Question

Charlotte has $900 in a savings account that earns 8% annually. The interest is not

compounded. How much interest will she earn in 1 year?

Use the formula /= prt, where / is the Interest earned, p Is the principal (starting amount), r
Is the Interest rate expressed as a decimal, and t is the time in years.

Answer 1

The answer would be $72 in one year

Answer 2

P=900 - the principal

R=0.08 - 8% as a decimal, the rate

T=1 - one year.

I=PRT

I=900(0.08)(1)

I=900(0.08)

I=72

Charlotte will earn $72 in one year.