Question

Melissa invests $250 in an account. Melissa invests her money in a simple interest account

that has an interest rate of 5%. What is the amount of interest in the account after 8 years?

Answer 1

$100

Explanation:

First, converting R percent to r a decimal

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

then, solving our equation

I = 250 × 0.05 × 8 = 100

I = $ 100.00

The simple interest accumulated

on a principal of $ 250.00

at a rate of 5% per year

for 8 years is $ 100.00.