Question

Anita has $300 in her savings account that earns 5% annually. The interest is not compounded. How much interest will she earn in 1 year?

Answer 1

300 x 0.05 = 15

So she will earn $15 of interest in 1 year

Answer 2

$15

Explanation:

We are given that

Anita has money in her saving account=$300

She earns annually=5%

We have to find the value of interest she will earn in 1 year when the interest is not compounded.

P=300, r=5%,t=1

To find the value of interest we will use the formula of simple interest.

Simple interest,I=
`(P* r* t)/(100)`

Substitute the values in the formula then, we get

Interest=
`(300* 5* 1)/(100)=15`

Hence, she will earns interest in 1 year=$15