Question

Jen has $60 in a savings account that earns 5% interest per year. the interest is not compounded. How much interest will she earn in 3 years

Answer 1

$9

Explanation:

Firstly, I want to say, if the interest is not compounded that means it is simple interest.

Simple interest is also called non-compounding interest.

We've, Principal(p)= $60

Rate of Interest (R)=5%

Time (T)= 3 years

Interest (I) = ?

By formula of Simple Interest,

S.I = PTR/100

=(60×3×5)/100

=900/100

=9

THEREFORE, the interest amount is $9.

Thank You.