Question

Debbie has $460 in a savings account that earns 8% annually. If the interest is not compounded, how much interest will she earn in 5 years? A) $18.40 B) $36.80 C) $184.00 D) $644.00

Answer 1

$184.00

Explanation:

Use the formula i = prt, where

p = principle or starting amount

r = interest rate expressed as a decimal

t = time in years

i = prt = (460)(0.08)(5) = 184

Note:

This question is asked in different ways. My question was "Debbi has $460 in a saving account that earns 8% simple interest annually. How much interest will she earn in 5 years?" If you had a slightly different question, the answer is most likely $644.00 for you. Read the questions carefully!

Hope this helps!

Answer 2

the answer is C.)
since the 8% of $460 is $36.80
the next 5 years will increase at the same rate
so then you have to multiply 36.80 by 5 which equals $184