Bob has $2,500 in a savings account that earns 3 % annually. How much will he earn in interest in 1 year? Use the formula = , where is the interest earned, is the principal (starting amount), is the interest rate expressed as a decimal, and is the time in years.

Pamela has a 30-year, 5.75% mortgage on her $250,000 home. she has been paying on it for 5 years, and has recently hit some financial trouble. if her lender agreed to lower the interest rate on her $231,905.47 balance to 5.5%, what will her new payment be for the remainder of the loan?