Question

Colin has $29,820 in a savings account that earns 7% interest per year. How much interest will he earn in 5 years?

Answer 1

We can find the interest using the following formula:

$I=PV\cdot r\cdot t$

Where:

PV = Present value or initial amount = $29820

r = interest rate = 7% = 0.07

t = time = 5

so:

$\begin{gathered} I=29820\cdot0.07\cdot5 \\ I=10437 \end{gathered}$

Answer:

$10437