Question

An deposited $100 in a savings account that offers a 5% interest rate. How much interest will he eam after 1

year?

A. $5
B. $50
C. $105
D. $500

Answer 1

The answer would be a think about it like this 10 percent of 100 is obviously 10 so just cut that in half and it would be five

Answer 2

Answer is A. $5 if it is just the interest itself!
Equation: I=P • r • t
P is the principle amount aka $100
r is the rate aka %5 or .05
t is the time in years aka 1

So to get the simple interest, use this equation: P=100•0.05•1
Which then equals your answer, $5!