Question

Amelia invests money in an account paying simple interest. She invests $100 and no money is added or removed from the investment. After one year, she has $101. What is the simple percent interest per year?

Answer 1

Answer:

$\textsf {1 percent}$

Step-by-step explanation:

$\textsf {Simple Interest Formula :}$

$\mathsf {I = P \times r \times t}$

$\textsf {Given :}$

$\textsf {I = 101 - 100 = 1}$

$\textsf {P = 100}$

$\textsf {t = 1}$

$\textsf {Solving :}$

$\mathsf {1 = 100 \times 1 \times r}$

$\mathsf {r = \frac{1}{100}}$

$\mathsf {r = 0.01}$

$\textsf {r = 1 percent}$

Answer 2

Let's see

• Principal=$100
• Final=$101

Total interest earned=101-100=$1

Now

• Interest rate=1/100×100=1%