Bill deposited $520 in a savings account that pays pays 6% simply interest per year. How much will he earn in 1 year?
$31.20
520 * 0.06 = ?
To calculate the amount Bill will earn in 1 year, we can use the formula for simple interest:
Interest = Principal * Rate * Time
Here, the principal is $520, the rate is 6%, and the time is 1 year.
Substituting these values into the formula, we get:
Interest = $520 * 6% * 1 year
To calculate the percentage, we divide the rate by 100:
Interest = $520 * 0.06 * 1 year
Simplifying the expression, we have:
Interest = $31.20 * 1 year
Therefore, Bill will earn $31.20 in one year.
To calculate how much Bill will earn in 1 year, we need to determine the amount of interest he will receive on his deposit.
The formula to calculate simple interest is:
Interest = Principal × Rate × Time
Where:
Principal is the amount deposited
Rate is the interest rate per year
Time is the duration the money is invested for
In this case:
Principal = $520
Rate = 6% = 0.06 (expressed as a decimal since the formula requires it)
Time = 1 year
Now we can calculate the interest earned:
Interest = $520 × 0.06 × 1
Interest = $31.20
Therefore, Bill will earn $31.20 in 1 year.