Question

Adam has $90 in a savings account. The interest rate is 10% per year and is not

compounded. How much will he have in 1 year?

Answer 1

Answer: 99 dollars, I believe.

Explanation: If Adam already has 90 dollars then the amount he earns in interest will be 10% of that. You could divide 90 by 10 or you could do 90 x .10, which would both equal 9. Add that 9 to the 90 you already have and you get 99 dollars.