Question

Sam deposited $400 into her savings account that earned 4.5% interest per year. How much money did she have after 2.5 years?

Answer 1

$445

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4.5%/100 = 0.045 per year,

then, solving our equation

I = 400 × 0.045 × 2.5 = 45

I = $ 45.00

The simple interest accumulated

on a principal of $ 400.00

at a rate of 4.5% per year

for 2.5 years is $ 45.00.