Question

Jada has $70 in a savings account that earns 5% annually. The interest is not compounded. How much will she have in one year? Use the formula I = PRT, where I is the interest earned, p is the principal, R is the interest rate expressed as a decimal, and T is the time in years.

Answer 1

$73.5

Step-by-step explanation:

Using the below formula;

`I=\text{Prt}`

where I = the interest earned

P = the principal = $70

r = the interest rate expressed as a decimal 5% =5/100 = 0.05

t = the time in years = 1 year

Let's go ahead and substitute the above values into our equation;

`\begin{gathered} I=70\ast0.05\ast1 \\ \therefore I=3.5 \end{gathered}`

So Jada will have an interest of $3.50.

Let's go ahead and determine how much she'll earn after 1 year;

`A=70+3.5=73.5`