Question

Seventh grade M.12 Simple interest E7Y Trisha has $74,430 in a savings account that earns 10% interest per year. The interest is not compounded. How much interest will she earn in 1 year? Use the formula i = prt, 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. $ Submit

Answer 1

Given:

The initial balance = P = $74,430

Interest rate per year = r = 10% = 0.1

The interest is not compounded, so it is a simple interset

Time = t = 1 year

So,

`I=P\cdot r\cdot t=74430\cdot0.1\cdot1=7443`

So, the answer is I = $7,443