Charles will have $184 in 7 years.
Solution:
Given,
Initial deposit: $100 (P)
Interest percentage: 12% (I)
Total number of years: 7 (T)
To find,
Amount after 7 years (A)
Formula,
[tex]A=P(1+r t) \rightarrow(1)[/tex]
First, converting 12 percent to a decimal , we get
[tex]r = \frac{R}{100} = \frac{12}{100} = 0.12 \text{ per year}.[/tex]
Substituting the values in equation (1) we get,
[tex]A = 100(1 + (0.12\times7)) = 184[/tex]
A = $184.00
The total amount accrued, principal plus interest, from simple interest on a principal of $100.00 at a rate of 12% per year for 7 years is $184.00.
