Final answer:
Franco will earn $3 in interest after one year with his savings account at a 5% annual interest rate not compounded on his $60 principal.
Step-by-step explanation:
Franco has a savings account with $60 that earns a 5% annual interest rate, and the interest is not compounded. To calculate the simple interest for one year, you can use the formula:
Simple Interest = Principal × Rate × Time
Plugging in the numbers:
Simple Interest = $60 × 0.05 × 1
Simple Interest = $3
The total future amount Franco will have after one year can be calculated using the formula:
Total future amount with simple interest = Principal + (Principal × Rate × Time)
Applying this to Franco's savings gives:
Total future amount (with simple interest) = $60 + ($60 × 0.05 × 1) = $63