Question

Jessie deposited $920 into a savings account that pays a simple annual interest rate of 1.79%. How much interest will he earn after 5 years?

Answer 1

 The interest will be $82.34 Formula P*R*T

Answer 2

$82.34 interest will he earn after 5 years

Explanation:

Use the formula:

`I = PRT` ......[1]

where,

I is the interest

P is the principal

R is the rate in decimal

T is the time in years.

As per the statement:

Jessie deposited $920 into a savings account that pays a simple annual interest rate of 1.79%.

⇒P = $920 , R= 1.79% = 0.0179

We have to find interest will he earn after 5 years.

T = 5 years

Substitute the given values in [1] we have;

`I = 920 \cdot 0.0179 \cdot 5`

Simplify:

I = $ 82.34

Therefore, $82.34 interest will he earn after 5 years