Question

Sally opens a savings account with $9,000 that earns 7% interest per year, not compounded How much interest, to the nearest penny, will Sally earn in 7 years?​

Answer 1

Answer: Sally will earn $4,830.00 in interest over 7 years.

Explanation:

If the interest is not compounded, then Sally will earn simple interest, which can be calculated using the formula:

I = P * r * t

where:

I = the interest earned

P = the principal amount (initial investment)

r = the annual interest rate (as a decimal)

t = the time period, in years

In this case, we have:

P = $9,000 (the initial deposit)

r = 7% = 0.07 (the annual interest rate)

t = 7 (the number of years)

So, plugging in the values:

I = $9,000 * 0.07 * 7

I = $4,830.00

Therefore, Sally will earn $4,830.00 in interest over 7 years.