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16 May, 13:36

Matt has $550 in his savings account. He is eager to know how much interest the bank will pay him for the whole year. He knows that the bank pays a 3 percent interest rate. He sits down with a pen, paper, and calculator to find out the simple interest

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  1. 16 May, 16:55
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    Nice story.

    We suppose the question is, "what is the amount of interest Matt will be paid?"

    The formula that applies is

    I = Prt

    I = $550*0.03*1 = $16.50

    Matt will be paid $16.50 in interest for the year.
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