Question

Pamela deposited $30 in a savings account earning 5% interest, compounded annually.

To the nearest cent, how much interest will she earn in 3 years?

Answer 1

`\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$30\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\dotfill &3 \end{cases} \\\\\\ I=(30)(0.05)(3)\implies I=4.5`