Question

Ruiz invests $55 at a simple interest rate of 4%. How much interest will he earn after 5 years?

Answer 1

Ruiz will earn `$11` after `5` years.

Explanation:

Using the formula `SI=(PxxRxxT)/100`, where `SI` is Simple Interest, `P` is the Principal Amount, `R` is the Rate of Interest, and `T` is the time period in number of years, we can calculate:

`SI=(55xx4xx5)/100`

`SI=(55xx20)/100`

`SI=(55xxcancel(20))/(cancel(100)5)`

`SI=55/5`

`SI=11`