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Ruth has $50 in a savings account that earns 10% annually the interest is not compounded how much will she have in one year

User Mahendran
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1 Answer

5 votes

Answer:

$55.00

Explanation:

r is the interest rate, 10% per year, or in decimal form, 10/100=0.1.

t is the time involved, 1....year(s) time periods.

So, t is 1....year time periods.

To find the simple interest, we multiply 50 × 0.1 × 1 to get that:

The interest is: $5.00

Usually now, the interest is added onto the principal to figure some new amount after 1 year(s),

or 50.00 + 5.00 = 55.00. For example:

If you borrowed the $50.00, you would now owe $55.00

If you loaned someone $50.00, you would now be due $55.00

If owned something, like a $50.00 bond, it would be worth $55.00 now.

User Jkramer
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