Question

Calculate the simple interest you would receive in one year on a savings account that earns 5% annual interest. your beginning balance is $255.19.

Answer 1

The simple interest formula:
I = P * r * t,
where:
I - interest,
P - investment,
r - interest rate,
t - time ( in years )
P = $255.19,  r = 5% = 0.05,  t = 1
I = $255.19 * 0.05 * 1 = $12.7595 ≈ $12.76
Answer: The simple interest you would receive in 1 year is $12.76.