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nignag [31]
2 years ago
8

Isabella deposited $500 into a savings account at a local bank that earned 5% interest per year. How much interest does she earn

in her first year?
Mathematics
1 answer:
Marat540 [252]2 years ago
4 0

Answer:

$25

Step-by-step explanation:

First, converting R percent to r a decimal

r = R/100 = 5%/100 = 0.05 per year,

putting time into years for simplicity,

12 months ÷ 12 months/year = 1 years,

then, solving our equation

I = 500 × 0.05 × 1 = 25

I = $ 25.00

The simple interest accumulated

on a principal of $ 500.00

at a rate of 5% per year

for 1 years (12 months) is $ 25.00.

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