Question

Write an equation for each simple interest account. Then find the amount of money in the account after the time indicated. Round to the nearest hundredth, if necessary.

Answer 1

The formula for calculating simple interest is I = PRT, where I is the interest earned, P is the principal amount, R is the interest rate, and T is the time in years. Example: If you have a $100 deposit at a simple interest rate of 5% held for one year, the amount of money in the account after one year would be $5.

Step-by-step explanation:

Simple Interest Equation and Calculation:

The formula for calculating simple interest is:

I = PRT

Where:

• I is the interest earned
• P is the principal amount
• R is the interest rate
• T is the time in years

Example:

If you have a $100 deposit at a simple interest rate of 5% held for one year, the amount of money in the account after one year would be:

$100 x 0.05 x 1 = $5