Question

Ruiz invests $5500 at a simple interest rate of 4%. How much interest will he earn after 5 years?

Answer 1

1,100 is the interest earned after 5 years

Answer 2

Interest earned after 5 years is $1100.

Explanation:

We know that,

`i=(Prt)/(100)`

where,

i = interest

P = principal = $5500

r = rate of interest = 4%

t = time period = 5 years

Putting the values,

`i=(5500* 4* 5)/(100)`

`=(110000)/(100)`

`=\$1100`

Therefore, the interest earned after 5 years is $1100.