Question

How does interest rate affect money earned on a savings account? (Site 1)

Answer 1

The interest rate affects the money earned on a savings account. A higher interest rate results in more money earned, while a lower interest rate results in less money earned.

Step-by-step explanation:

The interest rate affects the money earned on a savings account as follows:

1. A higher interest rate on a savings account will result in more money earned over time.
2. Conversely, a lower interest rate will result in less money earned.
3. For example, if you have $1,000 in a savings account with a 5% interest rate, you will earn $50 in interest over the course of a year. However, if the interest rate is only 2%, you will only earn $20 in interest.

Therefore, it's important to consider the interest rate when choosing a savings account in order to maximize your earnings.

Answer 2

It’s easy to calculate he amount of interest that you’ll earn by having your money in a saving account. Interest rates are the cost of borrowing money. It is the return for the service and risk of lending money. When you deposit your money into your bank account, usually ( hopefully) you want some sort of return.