Question

1. ernie has $40 in a savings account that earns 10% interest per year. the interest is not compounded. how much will he have in total in 5 years?

Explanation:

Step1: Calculate annual interest

The principal \( P = \$40 \), rate \( r = 10\% = 0.1 \). Annual interest \( I_{annual}=P\times r = 40\times0.1=\$4 \).

Step2: Calculate total interest in 5 years

Total interest \( I_{total}=I_{annual}\times5 = 4\times5=\$20 \).

Step3: Calculate total amount

Total amount \( A = P + I_{total}=40 + 20=\$60 \).

Answer:

\(\$60\)