Question

Rachel has $80 in a savings account.The interest rate is 10%per year and is not compounded. How much interest will she earn in 1year?​

Answer 1

I = $ 8.00

Equation:

I = Prt

Explanation:

First, converting R percent to r a decimal

r = R/100 = 10%/100 = 0.1 per year,

then, solving our equation

I = 80 × 0.1 × 1 = 8

I = $ 8.00

The simple interest accumulated

on a principal of $ 80.00

at a rate of 10% per year

for 1 years is $ 8.00.