Answer:
$30,000
Step-by-step explanation:
To solve this problem, lets use the simple interest formula:
[tex]I = Prt[/tex]
P = principal amount
r = interest rate (decimal form)
t = time
First, change 12% into its decimal form:
12% -> [tex]\frac{12}{100}[/tex] -> 0.12
Next, plug in the values in the equation:
[tex]I=25,000(0.12)(10)[/tex]
[tex]I=30,000[/tex]
The interest earned after 10 years is $30,000
