Question

If I put $80 into an account offering 2%

interest per year, how much interest would
I earn in five years?

Answer 1

$88

General Formulas and Concepts:

Pre-Algebra

Order of Operations: BPEMDAS

1. Brackets
2. Parenthesis
3. Exponents
4. Multiplication
5. Division
6. Addition
7. Subtraction

• Left to Right

Algebra I

Simple Interest Rate Formula: A = P(1 + rt)

• P is principle amount
• r is rate
• t is time

Explanation:

Step 1: Define

Identify

P = 80

r = 2% = 0.02

t = 5

Step 2: Find Interest

1. Substitute in variables [Simple Interest Rate Formula]: A = 80(1 + 0.02 · 5)
2. (Parenthesis) Multiply: A = 80(1 + 0.1)
3. (Parenthesis) Add: A = 80(1.1)
4. Multiply: A = 88