Question

The following information is known about a savings account.

Time = 6 years
Interest rate = 1.9%
Principal = $850

What amount of total interest will be earned at the end of year 6?
$16.15
$96.90
$946.90
$9,690.00

Answer 1

$96.90

Explanation:

Let's find 1.9% of our amount, which is $850.

1% of 850 = 8.5

we need to get 1.9%, so lets multiply our current 1 percent by 1.9, to get what 1.9% would be.

1% of 850 = 8.5

x1.9 x1.9

1.9% = 8.5 x 1.9

1.9% = $16.15

This means that every year, the savings account gains $16.15 in interest. However, this doesn't account for all 6 years. So we multiply 16.15 by 6, for the 6 years that the money is in the saving account for.

$16.15 x 6 = $96.90 !

So, the total interest is $96.90 :)

Answer 2

96.90

Explanation:

850 * .019 * 6 =

This is simple interest ( no compounding interest)