Ethan has $90 in a savings account. The interest rate is 10% per year and is not compounded. How much will he have in 1 year?

Sagot :

Remember the formula for simple interest (not compunded) is:

[tex]I=P\times R\times T[/tex]

Where:

• P = Initial amount

,

• R = Interest rate

,

• T = Number of periods (years in this case)

The interest for 1 year is:

[tex]I=90\times0.1\times1=9[/tex]

The total amount in the acount after one year would be $99