Calculating Yearly Earnings with Annual Interest

What would be the yearly earnings for a person with $9900 in savings at an annual interest rate of 11.2% percent?

Round your answer to the nearest whole number. Do not include the comma, period, and "$" sign in your response.

Answer: $1,109

Answer:

The computation of the yearly earnings is shown below:

Yearly earnings = Savings × Annual interest rate

= $9,900 × 11.2%

= $1,109

When calculating the yearly earnings for a person with $9900 in savings at an annual interest rate of 11.2%, we follow a simple formula. By multiplying the savings amount by the annual interest rate, we can determine the amount earned over the course of a year.

In this case, the yearly earnings would be $1,109. This means that with $9900 in savings and an interest rate of 11.2%, the person would earn an additional $1,109 in one year.

It is important to understand how interest rates impact savings and earnings, as higher interest rates can lead to greater returns on investments. By calculating yearly earnings, individuals can better plan for their financial future and make informed decisions about saving and investing their money.