Question

Jackie has $500 in a savings account.The interest rate is 5% per year and is not compounded. How much will she have in total in 1 year?

Answer 1

$525

Explanation:

Jackie starts with $500, and the interest rate is 5% per year.

This means that, after one year, Jackie will have accumulated 5% interest with the $500 she put into the savings account.

Now, we can find 5% of $500 by converting 5% to its fraction form, which is 5/100. 5% of a value means that you need to multiply the fraction (or decimal) by the said value. So, we have:

`(5)/(100)` · 500 =

`(2500)/(100)` =

25

Therefore, the amount of interest she has accumulated in one year is $25. Combined with the money in her savings account, she has $525, since $500 + $25 = $525.