Question

3. Henry's banks said they will put in 20% interest annually if he keeps atleast $5,000 in his savings account.How much money in interest will the bank put in Henry'sAll changes savedaccount?OSTOO $10,000O $100$1,000

Answer 1

The interest he will receive is $1000

Explanation

Given information:

A deposit of at least $5000 will attract an annual interest of 20%

If Henry decided to deposit $5000, then he will receive the following interest

`\begin{gathered} \text{amount = interest rate }*\text{ amount deposited} \\ \end{gathered}`

Interest rate =20%

Amount deposited = $5000

`\begin{gathered} \text{Amount = 20\% }*\text{ 5000} \\ \text{Amount = }(20)/(100)*5000 \\ \text{Amount = }(100000)/(100) \\ \text{Amount = \$1000} \end{gathered}`

Hence, the interest he will receive is $1000