Raymond has $10.00 in a savings account that's earns 10% interest per year. The interest is not compounded. How much interest will in the earned in 2 years?

Question

Kiley Jensen

Mathematics

6 November, 12:47

Raymond has $10.00 in a savings account that's earns 10% interest per year. The interest is not compounded. How much interest will in the earned in 2 years?

+3

Answers (1)

Know the Answer?

Taryn Mora · Answer 1

Answer:interest of $2 would be earned in 2 years.

Step-by-step explanation:

If the interest is not compounded, it means that it is simple interest. The formula for simple interest is expressed as

I = PRT/100

Where

P represents the principal or initial amount in the account.

R represents interest rate.

T represents time in years.

From the information given,

P = $10

R = 10%

T = 2 years

Therefore,

I = (10 * 10 * 2) / 100

I = $2