Final answer:
The interest earned on a $1000 deposit in a savings account with an annual interest rate of 5.5% after one year is $55, which is option B.
Step-by-step explanation:
To calculate the interest earned on a high-interest savings account, we can use the formula:
Interest = Principal × Rate × Time
Given that $1000 is deposited in the account and the annual interest rate is 5.5%, we can substitute the values into the formula:
Interest = $1000 × 0.055 × 1
To calculate the amount of interest earned on a savings account, we use the simple interest formula which is Interest = Principal × Rate × Time. In this case, the principal amount is $1000, the annual interest rate is 5.5%, and the time is 1 year. We convert the percentage to a decimal by dividing 5.5 by 100, resulting in 0.055.
Then we multiply the principal by this decimal rate and the time frame: $1000 × 0.055 × 1 = $55.
Therefore, after one year, $55 in interest is earned, which corresponds to option B.