Elena has $100,000 in a savings account that earns 9 3/8% interest per year. The interest is not compounded. How much interest will she earn in 5 years?
$
Share
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Elena has $100,000 in a savings account that earns 9 3/8% interest per year. The interest is not compounded. How much interest will she earn in 5 years?
$
To find out how much interest Elena will earn in 5 years, you can use the formula for simple interest:
[
text{Interest} = text{Principal} times text{Rate} times text{Time}
]
Where:
– Principal = $100,000
– Rate = 9 3/8% = 9.375% = 0.09375 (when expressed as a decimal)
– Time = 5 years
Now, plug in the values:
[
text{Interest} = 100,000 times 0.09375 times 5
]
Calculating that gives:
[
text{Interest} = 100,000 times 0.09375 times 5 = 46,875
]
So, Elena will earn $46,875 in interest over 5 years.