Question

lena has $70,000 in a savings account that earns 15% interest per year. The interest is not compounded. How much interest will she earn in one year

Answer 1

lena has $70,000 in a savings account that earns 15% interest per year. The interest is not compounded. How much interest will she earn in one year

we know that

The simple interest formula is equal to

`I=P(rt)`

`I=P\mleft(rt\mright)`

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

P=$70,000

r=15%=15/100=0.15

t=1 year

substitute in the given formula

`\begin{gathered} I=70,000(0.15\cdot1) \\ I=\$10,500 \end{gathered}`