Question

Finnhas$60inasavingsaccount.Theinterestrateis10%peryearandisnotcompounded.Howmuchinterestwillheearnin1year?

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

I = $ 6.00

Explanation:

Equation:

I = Prt

Calculation:

First, converting R percent to r a decimal

r = R/100 = 10%/100 = 0.1 per year,

then, solving our equation

I = 60 × 0.1 × 1 = 6

I = $ 6.00

The simple interest accumulated

on a principal of $ 60.00

at a rate of 10% per year

for 1 years is $ 6.00.