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

1 Answer
Nov 19, 2016

Answer:

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#