Question

A saving account earns 4.5 simple interest per year. If 650.00 is deposited and no withdrawals or deposits are made during one year how much interest will be earned after one year

Answer 1

To calculate simple interest for one year on a $650.00 deposit at a 4.5% simple interest rate, multiply the principal by the rate expressed as a decimal and then by the time in years. The interest earned after one year would be $29.25.

Step-by-step explanation:

To calculate the amount of simple interest earned on a savings account after one year, you can use the simple interest formula:

Interest = Principal × Rate × Time

In this scenario, the principal amount ($650.00) is deposited at a simple interest rate of 4.5% per year. To convert the percentage into a decimal, divide by 100; therefore, 4.5% becomes 0.045. Since no withdrawals or deposits are made during one year, the time is 1 year.

Using the formula, the calculation is as follows:

$650 × 0.045 × 1 = $29.25

So, the interest earned after one year is $29.25.

Answer 2

29.25 Interest

Step-by-step explanation:

Take the formula: I=PRT

The principal is 650.00, 4.5 is the rate, 1 year is the time, We do not know the interest.

Change the rate, 4.5 to 0.045 to help solve the problem.

Times 650.00, 0.045, and 1 together.

You will get 29.25, Which is the answer!

Booyah! You are done.

Hope this helps!