Question

Ahab opens a savings account with $610 that earns 4.8% interest per year, not compounded. How much interest, to the nearest cent, will Ahab earn in 2 years? Give your answer in dollars.

Answer 1

$58.56

Step-by-step explanation:

The interest can be calculated using the following equation:

`I=P\cdot r\cdot t`

Where P is the Initial value, r is the interest rate per year and t is the number of years.

So, replacing P by $610, r by 0.048 and t by 2, we get:

`I=610\cdot0.048\cdot2=58.56`

Therefore, Ahab will earn $58.56