As incentive for Gretchen to save the two thousand five hundred dollars she recently inherited, her parents tell her that they will pay her ten percent simple annual interest on the amount that she saves. How much money will Gretchen have after ten years if she saves all of the money she inherited?

Question

yanasidlinskiy · Answer

So here we need to know what SI actually is!
It is additional money someone gets depending on the principal invested, the rate and the amount of time the interest is given!
So in this question the principal amount is = $2500
And the rate of interest offered by gretchen's parents is = 10/100
And the amount of time for which thy WILL offer interest is = 10 years!
Use this simple formula for 
Interest = Principal*rate*time = 2500*10/100*10
Tell me the Simple INterest (SI)
And then tell me the final amount = principal (2500) + Interest (SI)
Find it!! :D

anonymous · Answer

thanku

yanasidlinskiy · Answer

Your WElcome!:) Glad I could help!:)

anonymous · Answer

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