Question

Sue has $400 in savings if the bank pays her 6 1/2% interest, how much interest will sue earn?

Answer 1

To calculate the interest Sue will earn from her savings, you can use the formula for simple interest:

\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]

Where:
- Principal = $400
- Rate = 6.5% = 0.065 (as a decimal)
- Time = 1 year (assuming this is for one year)

Now substituting the values into the formula:

\[ \text{Interest} = 400 \times 0.065 \times 1 \]

\[ \text{Interest} = 400 \times 0.065 \]

\[ \text{Interest} = 26 \]

So, Sue will earn $26 in interest in one year.