Question

Debbie has $460 in a savings account that earns 8% simple interest annually. How much interest will she earn in five years

Answer 1

$184

Explanation:

Simple interest is computed using the formula ...

I = Prt

for principal amount P, interest rate r, and time period t. In this problem, we have P = $460, r = .08, t = 5, so the interest is ...

I = $460 × .08 × 5 = $184

Debbie's account will earn $184 in interest in 5 years.