Question

Edna has $900 in a savings account that earns 5% interest per year. The interest is not compounded. How much interest will she earn in1 a year?

Answer 1

I= $45

Explanation:

Giving the following information:

Edna has $900 in a savings account that earns 5% interest per year.

To calculate the interest earned, we need to use the simple interest formula:

I= P*r*t

P= principal= $900

r= interest = 0.05

t= time= 1

I= 900*0.05*1

I= $45