Question

Katie has $600 in a savings account that earns 5% annually. The interest is not compounded. How much interest will she earn in 1 year ?

Answer 1

$30

Explanation:

The formula for interest is I = Prt

Principal = 600

Rate = 0.05 or 5%

Time: 1 year

600 x 0.05 x 1 = 30

She earned an interest of 30.