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Matt has $550 in his savings account. He is eager to know how much interest the bank will pay him for the whole year. He knows that the bank pays a 3 percent interest rate. He sits down with a pen, paper, and calculator to find out the simple interest

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Nice story.

We suppose the question is, "what is the amount of interest Matt will be paid?"

The formula that applies is
I = Prt
I = $550*0.03*1 = $16.50

Matt will be paid $16.50 in interest for the year.
User Renefritze
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