Question

what is the interest earned in savings account after 12 months on a balance of $4500 if the interest rate is 1% apy compounded yearly

Answer 1

$45

Explanation:

Given data

Principal=$4500

Rate= 1%

Time= 12 months= 1 year

The simple interest formula is

SI=PRT/100

substitute

SI= 4500*1*1/100

SI= 4500/100

SI= $45

Hence the interest earned is $45