Question

Reggie 60$ in savings account that earns 10% annually. The interest is not compounded. how much he have in 1 year? Use the formula i = prt, where i is the interest earned, p is the principle (starting amount), r is the interest rate expressed as a decimal, and t is the time in years

Answer 1

Reggie 60$ in savings account that earns 10% annually. The interest is not compounded. how much he have in 1 year? Use the formula i = prt, where i is the interest earned, p is the principle (starting amount), r is the interest rate expressed as a decimal, and t is the time in years

we know that

The simple interest formula is equal to

`I=P(rt)`

`I=P\mleft(rt\mright)`

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

P=$60

r=10%=0.10

t=1 yer

substitute

I=60(0.10*1)=$6

answer is $6