Question

What is the simple interest you would receive in one year on a savings account that earns 5% annual interest if your beginning balance is $255.19?

Answer 1

Interest is `$12.76`

Explanation:

`$255.19` is (P)rincipal

`0.05` is the (R)ate as a decimal or `5/100`

`1` year is the (T)ime

`$12.76` is the (I)nterest earned if you calculate it using the formula

`I = P(R)(T)`

`255.19(0.05)(1)`

`=$12.76`