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An deposited $100 in a savings account that offers a 5% interest rate. How much interest will he eam after 1 year? A. $5**
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## Answers ( )

The answer would be a think about it like this 10 percent of 100 is obviously 10 so just cut that in half and it would be five

Answer is A. $5 if it is just the interest itself!

Equation: I=P • r • t

P is the principle amount aka $100

r is the rate aka %5 or .05

t is the time in years aka 1

So to get the simple interest, use this equation: P=100•0.05•1

Which then equals your answer, $5!