Question

a decimal, and t is the time in years.
1) Emily has $50 in a savings account. The interest rate is 5% per year and is not compounded.
How much will she have in 1 year?

Answer 1

Answer:

52.50$

Given:

⇒ Emily has 50% in a savings account currently.

⇒ Interest rate is 5% per year and is not compounded

To find:

⇒ How much she will have in 1 year

__

steps

⇒ $5\text{percent} \times50$

⇒ $=\frac{5}{100} \times50$

⇒ $=\frac{100}{(5\times50)}$

⇒ $= \frac{250}{100}$

⇒ $=2.5$

Now that we have calculated her interest rate per year, we must calculate that added onto her balance in her account before the interest was applied.

⇒ $2.5+50$

⇒ $52.50$

Therefore, Emily will have 52 dollars and 50 cents in a year.

Answer 2

She will save $52.5 per year.