Question

Leah has$40a savings account.Theinterestrateis

5 %
per year and is not compounded. How much will she have in 1 year?

Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Answer 1

$42

Explanation:

i = prt

i = $40 x 0.05 x 1

i = $2

She will have $40 + $2 = $42 in 1 year at 5% interest rate.