Question

How much interest is earned $5.43 at 5% for 5 years?

Answer 1

$1.36

Explanation:

Simple

Total = Beginning (1 + Percent * Time)

or A = P(1 +rt)

A = 5.43(1 + . 05*5)

A = 5.43(1 + .25)

A = 5.43(1.25)

A = 6.7875 or 6.79

6.79 - 5.43 = 1.36