Question

Lillian has $900 in a savings account that earns 6% interest per year. The interest is not compounded. How much interest will she earn in 3 years?

Answer 1

$162

Explanation:

Interest (non-compounding) = principal x rate x time (in years)

I = 900(.06)(3)

I = 162

Answer 2

$162

Explanation:

if the interest is not compounded, its a simple interest.

simple interest formula = (PRT)/100 ......where p is the amount of money, r is rate of interest and t is time

using the formula : ($900 * 6% * 3 years)/100

: $162

∵ Lillian earns $162 in 3 years.