Jada has $100 in a savings accountthat earns 5% interest per year. Theinterest is not compounded. Howmuch interest will she earn in 1 year?Use the formula i = prt, where i is theinterest earned, p is the principal(starting amount), r is the interestrate expressed as a decimal, and t isthe time in years.

When compound interest cannot be used then simple interest method is used. Simple interest. When…

Answered: Jada has $100 in a savings account that…

Jada has $100 in a savings account that earns 5% interest per year. The interest is not compounded. How much interest will she earn in 1 year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

Jada has $100 in a savings account
that earns 5% interest per year. The
interest is not compounded. How
much interest will she earn in 1 year?
Use the formula i = prt, where i is the
interest earned, p is the principal
(starting amount), r is the interest
rate expressed as a decimal, and t is
the time in years.

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