Answer:
After 10 years, she will has $96 in her bank.
Step-by-step explanation:
It is given that Andrea's saving account is $80 and earns 2% interest per year as a Simple Interest (Not Compounded). Using simple interest formula, Interest = (P×R×T)/100 where P is the principal, R is the interest rate and T is number of years :
[tex]I = \frac{p \times r \times t}{100} [/tex]
P = $80
R = 2%
T = 10 years
[tex]I = \frac{80 \times 2 \times 10}{100} [/tex]
[tex]I = \frac{1600}{100} [/tex]
[tex]I = 16[/tex]
It is given that the interest amount is $16. So the total amount she has after 10 years in the bank is $96 :
interest amount = $16
principal = $80
total = $16 + $80
= $96
