Question

Bredan has $200 on a savings account with a 1% interest rate. Using the formula for a simple interest how much will her earn in interest after 7 years

Answer 1

Answer:

$14

Explanation:

Simple interest can be calculated using below formula

I=PRT .................(1)

Where P= principal = $200

I= interest = 1%

T= time = 7 years

R= rate = 1% = (1/100) =0.01

Then substituting the given values into eqn (1)

I = (200× 0.01 × 7)

I =$14

Hence, she will her earn $14 of interest