Question

Han earned $850 over the summer working odd jobs. He wants to put his money into a savings account for when he is ready to buy a car. His bank offers a simple interest account at 5%, how much interest will Han have earned after 2 years?

Answer 1

85

Explanation:

Answer 2

85 in intreset and 935 totoal

Explanation:

Answer:

A = $935.00

I = A - P = $85.00

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year.

Solving our equation:

A = 850(1 + (0.05 × 2)) = 935

A = $935.00

The total amount accrued, principal plus interest, from simple interest on a principal of $850.00 at a rate of 5% per year for 2 years is $935.00.