Problema Solution
Ernie Rolph deposits $5,450 at 8% annual simple interest for 1 year. How much interest will he earn?
Answer provided by our tutors
P = $5,450
r = 0.08 or 8%
t = 1 year
I = interest
I = P*r*t
I = 5450*0.08*1
I = $436
Ernie will earn $436 interest.