Question

joana has doposited 5,500 into her savings account for 1 year. if the rate of interest on the account is 10% how much interest would should earn at the end of the period?

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Answer 1

To calculate the interest earned on Joana's savings account, we can use the simple interest formula:

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

Where:

- Principal = $5,500 (the initial amount deposited)

- Rate = 10% or 0.10 (expressed as a decimal)

- Time = 1 year

Substituting the given values into the formula:

\[ \text{Interest} = 5500 \times 0.10 \times 1 \]

\[ \text{Interest} = 550 \times 1 \]

\[ \text{Interest} = 550 \]

Therefore, Joana would earn $550 in interest at the end of the period.