Fleta has $100.00 in a savings account that earns 5% interest

per year. The interest is not compounded.

What is the total amount Fleta will have in 3 years?

First year 100x0.05 = 5

Second year 100x0.05 = 5

Third year 100x0.05 = 5

Total interest 15$ for three year + the original amount mean 100

Total after three year

$115

Because the interest not compounded mean : where previously accumulated interest is not added to the principal amount of the current period, so there is no compounding.