Question

Perry earns 5 percent simple interest annually on his savings account. How much interest will Perry earn each month on $650? A. $2.70 B. $32.50 C. $682.50

Answer 1

b. 32.50
650 × .05 = 32.50 so perry will earn 32.50 of interest each month

Answer 2

Option (a) is correct.

The interest that Perry will earn each month on $650 is $ 2.70

Explanation:

Given : Perry earns 5 percent simple interest annually on his savings account.

We have to determine the interest that Perry will earn each month on $650.

Since, Given Perry rate of interest is 5%

So , her monthly rate of interest will be
`(5)/(1200)`

Using Formula for Simple interest

`S.I = P* r* t`

Thus, for principal $ 650 at rate of interest
`(5)/(1200)` for one month .

Perry interest will be,

`S.I.=650\cdot(5)/(1200)\cdot1`

Simplify, we get ,

Simple interest = $ 2.70

Thus, The interest that Perry will earn each month on $650 is $ 2.70