what is the interest earned after 1 year in a...
what is the interest earned after 1 year in a savings account with an initial investment of $320 and a 5% simple interest rate? interest = $?
Answer
# Explanation:
## Step1: Identify the simple - interest formula
The formula for simple interest is $I = Prt$, where $P$ is the principal amount, $r$ is the interest rate (in decimal form), and $t$ is the time in years.
## Step2: Convert the interest rate to decimal
The interest rate $r = 5\%=0.05$. The principal amount $P = 320$ and the time $t = 1$ year.
## Step3: Substitute values into the formula
$I=Prt=320\times0.05\times1$.
## Step4: Calculate the interest
$I = 320\times0.05\times1=16$.
# Answer:
$16$