Question

How much interest would you earn after one year if you deposited $1,000 into a savings account that will pay you 7.5% annual interest?

A. $75
B. $70
C. $80,
D. $85

Answer 1

The interest earned after one year with a deposit of $1000 into a savings account that pays 7.5% annual interest is $75.

Step-by-step explanation:

To calculate the interest earned after one year, we can use the formula:

Interest = Principal * Rate

Plugging in the given values, we have:

Interest = $1000 * 0.075 = $75

Therefore, the correct answer is $75 (option A).