Question

Zoe has $24 in a savings account. The interest rate is 5% per year and is not compounded. How much will she have to save in 4 years Use formula I= p times r times t

Answer 1

$28.8

Explanation:

First we need to get the interest on the savings for the 4years. Since it is not compounded, we will use the simple interest (SI) formula.

According to the simple interest formula, SI = Principal × Rate × Time/100

Give principal = $24 rate = 5℅ time = 4years

SI = 24×5×4/100

SI = 480/100

SI = $4.8

Zoe interest for four years will be $4.8.

Amount she has saved for 4years = principal + interest = $24+$4.8

= $28.8