Question

QuestionAreli invested a principal of $950 in her bank account with an interest rate of 3%. How much interest did she earn in 5years?

Answer 1

$ 142.5

Explanation

to solve this we can use the formula:

`i=\text{Prt}`

where i is the interest, P is the principal, r is the rate ( in decimals) and t is the time

then

Step 1

Let

`\begin{gathered} i=i \\ P=950 \\ r=3\text{ \% =0.03} \\ \text{Time= 5 years} \end{gathered}`

replace in the formula

`\begin{gathered} i=950\cdot0.03\cdot5 \\ i=142.5 \end{gathered}`

hence, the answer is

$ 142.5

I hope this helps you