Personal Finance 1st Edition by Jack R. Kapoor

Exercise 22

Calculating Earnings on Savings. What would be the yearly earnings for a person with $8,000 in savings at an annual interest rate of 2.5 percent? (Obj. 4)

Step 1 of 2

We have to compute the amount of earnings on savings i.e. interest on savings. It can be computed by using following formula:

Where,