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24 April, 13:58

Can someone tell me how to work out this problems and ones similar to it? Jack has $16 in a savings account. The interest rate is 5% per year and is not compounded. How much will he have in 1 year?

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  1. 24 April, 14:40
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    It is a Simple interest problem.

    principle = $16

    rate = 5%

    time = 1 year

    simple interest = PRT/100

    = (16 x 5 x 1) / 100

    = 4/5

    = $0.80

    amount after 1 year = 16 + 0.80 = $16.80
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