Question

Drew invests $70.00. It earns 50% interest annually.

How much interest will Drew earn in one year?

Answer 1

Explanation:

50% interest annually.

that means he gets 50% interest of the invested capital every year.

and that means he gets 50% of $70 in one year.

70 = 100%

1% = 100%/100 = 70/100 = $0.70

50% = 1%×50 = 0.7 × 50 = $35

he will earn $35 interest in one year.

as you noticed: 50% simply means 1/2 (as 100% stands for the whole).