Question

Alana has $80 in a savings account. The interest rate is 5% per year and is not compounded. How much interest will she earn in 1 year?

Answer 1

Answer:

I = $ 1,937.50

Explanation:

Equation:

I = Prt

Calculation:

First, converting R percent to r a decimal

r = R/100 = 3.875%/100 = 0.03875 per year,

then, solving our equation

I = 10000 × 0.03875 × 5 = 1937.5

I = $ 1,937.50

The simple interest accumulated

on a principal of $ 10,000.00

at a rate of 3.875% per year

for 5 years is $ 1,937.50.

I hope this is correct and hope it helps!