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What would be the yearly earnings for a person with $6,600 in savings at an annual interest rate of 5 percent

User Levvy
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Final answer:

The yearly earnings on $6,600 at an annual interest rate of 5 percent would be calculated using the simple interest formula and the result would be $330.

Step-by-step explanation:

The question asks about the yearly earnings on savings at a certain interest rate. To find the yearly earnings from an interest rate, we can use the formula for simple interest: Interest (I) = Principal (P) x Rate (r) x Time (t). In this case, the principal (P) is $6,600, the annual interest rate (r) is 5% (or 0.05 when expressed as a decimal), and the time (t) is 1 year.

Applying the simple interest formula, we determine the earnings:
I = 6600 x 0.05 x 1 = $330.

Therefore, the yearly earnings from the $6,600 savings at an annual interest rate of 5 percent would be $330.

User Marklam
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