Question

Lauren invests money in an accout paying simple interest.She invests $50 and no money is added or removed from investments.After one year she has $50.50.What is the simple percent of interest per year

Answer 1

1%

Explanation:

\text{\color{blue}{100\%} represents the \color{blue}{starting balance}: \color{blue}{\$50}.}

100% represents the starting balance: $50.

Method 1

Express the ending balance as a percentage of the starting balance:

\frac{\color{darkviolet}{\$50.50}}{\color{blue}{\$50}}=

$50

$50.50

​

=

\,\,1.01

1.01

1.01\times100=

1.01×100=

\,\,\color{darkviolet}{101\%}

101%

\text{Subtract the starting \color{blue}{100\%} to get the \color{green}{percent interest}:}

Subtract the starting 100% to get the percent interest:

\color{darkviolet}{101\%}-\color{blue}{100\%}=

101%−100%=

\,\,\boxed{\color{green}{1\%}}

1%

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