Question

Isabella deposited $2,000 in an account that pays 5% simple annual interest. After one year, how much interest will her investment pay?

A) $100
B) $50
C) $200
D) $150

Answer 1

The interest Isabella's investment will pay is $100. Hence the correct answer is option A

Step-by-step explanation:

To find the interest Isabella's investment will pay, we can use the formula: Interest = Principal x Rate x Time. In this case, the principal is $2,000 and the rate is 5% (or 0.05 as a decimal) for one year. Plugging these values into the formula, we get: Interest = $2,000 x 0.05 x 1 = $100.

Therefore, the interest Isabella's investment will pay is $100.

Hence the correct answer is option A