Larry invests $100 in a savings plan. The plan pays 4 ½% interest each year on his $100 account balance. How much money will Larry earn in interest after 3 years? After 5 years?
Interest = (principal or amount invested) • (interest as a decimal) • (time in years) I = (100)•(0.045)•(3) = $13.50 and I = (100)•(0.045)•(5) = $22.50
