Question

Loretta invested $1000 in a simple interest account yielding 5% paid annually. In 2 years, she will have $1100 in her account. From this example, we can conclude that $1100 represents the

Answer 1

Answer:

periodic interest rate

Step-by-step explanation:

Answer 2

Answer: $1100 will represent the amount after 2 years at the rate of 5%.

Step-by-step explanation:

Since we have given that

Principal amount = $1000

Rate of interest = 5%

Time period = 2 years

As we know the formula for "Simple Interest ":

$Interest=\frac{P\times R\times T}{100}\\\\Interest=\frac{1000\times 5\times 2}{100}\\\\Interest=\ 10$

And we know that

$Amount=Principal+Interest\\\\Amount=1000+100\\\\Amount=\ 1100$

So, $1100 will represent the amount after 2 years at the rate of 5%.