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22 votes
Amelia invests money in an account paying simple interest. She invests $100 and no money is added or removed from the investment. After one year, she has $101. What is the simple percent interest per year?

User Paulcam
by
5.8k points

2 Answers

3 votes

Let's see

  • Principal=$100
  • Final=$101

Total interest earned=101-100=$1

Now

  • Interest rate=1/100Ă—100=1%
User Mahboob
by
7.0k points
12 votes

Answer:


\textsf {1 percent}

Explanation:


\textsf {Simple Interest Formula :}


\mathsf {I = P * r * t}


\textsf {Given :}


\textsf {I = 101 - 100 = 1}


\textsf {P = 100}


\textsf {t = 1}


\textsf {Solving :}


\mathsf {1 = 100 * 1 * r}


\mathsf {r = (1)/(100)}


\mathsf {r = 0.01}


\textsf {r = 1 percent}

User Jitendra Nath
by
7.4k points
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