Question

Rhianna has $100 in a savings account that earns 5% interest per year.The interest is not compounded.How much interest will she earn in 1year?Use the formula i = prt, where i 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

$5

Explanation:

Using the formula given i=prt we can do the following: 100 x 0.05 x 1= $5

Therefore the total interest after one year would be $5