Question

Debbie has $460 in a savings account that earns 8% annually. If the interest is not compounded, how much interest will she earn in 5 years?

Answer 1

She earned $184 in interest.

$644 in all.

Here's why:

The formula is interest = principal x rate x time.

i = 460 x 8% x 5 or i = 460 x 0.08 x 5.

PEMDAS

460(0.08) = 36.8

i = 36.8 x 5

36.8 x 5 = 184

i = $184

To find them in all, add the original amount she deposited with the interest.

460 + 184 = 644

In all: $644