Question

Kenny has $500 in an account. The interest rate is 5% compounded annually.

To the nearest cent, how much interest will he earn in 1 year?

Answer 1

$525

Explanation:

new value = starting value(1 + rate)^years

new value = 500(1 + .05)^1

new value = 500(1.05)

new value = $525

Answer 2

25

Step-by-step explanation: Im not sure how to do it thats just what IXL says