Problema Solution
If Lonnie put $820.00 into a savings account that earned 4.8% simple interest. How much money would she have at the end of one year?
Answer provided by our tutors
The formula for finding simple interest is: Interest = Principal * Rate * Time.
At the end of the year will be: Principal + Interest
Principal = $820.00
Rate = 0.048 or 4.8%
Time = 1 year
Interest = 820*0.048*1
Interest = $39.36
$820.00 + $39.36 = $859.36
Lonnie will have $859.36 at the end of the year.