Question

Nolan has $60 in a savings account that earns 5% interest per year The interest is not compounded. How much will he have in 1 year? interestperyear.Theinterestisnotcompounded.Howmuchwillhehavein1year?

Answer 1

Explanation:

If the interest is not compounded, it means that it is simple interest. The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited.

R represents interest rate

T represents the duration in years.

From the information given,

P = 60

R = 5%

T = 1 year

I = (60 × 5 × 1)/100 = $3

The amount that she will have in 1 year is

60 + 3 = $63