Question

Ryan has $16 in a savings account. The interest rate is 15% per year and is not compounded. How much will she have in 1 year? Use formula i=p*r*t, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years

Answer 1

$18.4

Step-by-step explanation:

At the end of the year, Ryan will have the initial saving plus the interest earned.

So, to calculate the interest earned we will use the given equation:

i = p*r*t

So, replacing p by 16, r by 0.15, and t by 1, we get:

i = 16 x 0.15 x 1

i = 2.4

Then, after 1 year, she will have:

$16 + $2.4 = $18.4

Therefore, the answer is $18.4