To determine how much interest Samantha will earn in 1 year, we can use the formula for simple interest:
\[ i = prt \]
where:
- \( i \) is the interest earned,
- \( p \) is the principal amount,
- \( r \) is the annual interest rate (expressed as a decimal),
- \( t \) is the time in years.
Given:
- \( p = 100 \) (the principal amount),
- \( r = 5\% \) (the annual interest rate, which is 0.05 when expressed as a decimal),
- \( t = 1 \) year.
Now, substitute the given values into the formula:
\[ i = 100 \times 0.05 \times 1 \]
\[ i = 100 \times 0.05 \]
\[ i = 5 \]
So, Samantha will earn $5 in interest in 1 year.
Samantha has $100 in a savings account that earns 5% annually.The interests not compounded.How much interest will she earn in 1 year?
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.
1 answer