Question

a woman put $580 into a savings account for one year. the rate of interest on the account was 61 1/2%. how much was the interest for the year in dollars and cents?( round to the nearest cent )

Answer 1

The amount of interest earned from a specific investment can be calculated by multiplying the principal amount with the decimal equivalent of the given percentage or interest rate. That is,

I = P x i

Substituting the known values,

I = ($580)(0.615)

I = $356.7

Answer: $356.7