Answer to Question #100677 in Financial Math for j

Question

Kate has $63,180 in a savings account.The interest rate is 5% per year and is not compounded.How much interest will she earn in 1year?

Answer 1

Given,

Principal =P = $\$63,180$ ;

Rate of interest = r = 5% = 0.05;

Time Period = t = 1 year;

$$Interest = {P \times r \times t}$$

Plug the values in this formula

$$Interest = {63180 \times 0.05 \times 1}$$

$$Interest = \$ 3159$$

Answer:

Interest = $3159.