Answer :
lena has $70,000 in a savings account that earns 15% interest per year. The interest is not compounded. How much interest will she earn in one year
we know that
The simple interest formula is equal to
[tex]I=P(rt)[/tex]
[tex]I=P\mleft(rt\mright)[/tex]where
I is the Final Interest Value
P is the Principal amount of money to be invested
r is the rate of interest
t is Number of Time Periods
in this problem we have
P=$70,000
r=15%=15/100=0.15
t=1 year
substitute in the given formula
[tex]\begin{gathered} I=70,000(0.15\cdot1) \\ I=\$10,500 \end{gathered}[/tex]