Question

Principle = $500
Interest rate = 5%
Time = 5 years
What is the interest earned?
95
105
55
125
1

Answer 1

Answer: $125

Explanation: First begin with the interest formula which is below.

Interest = principal · rate · time

In this problem, we're solving for the interest.

The principal is the amount invested of $500.

The rate is 5% which we can write as .05.

The time is 5 years.

So we have I = (500)(.05)(5).

Now we multiply.

(500)(.05) is 25 and (25)(5) is 125.

This means that the interest earned is $125.

Answer 2

Answer: $125

Step-by-step explanation:

Principal (P) = $500

Interest rate (R) = 5%

Time (T) = 5years

Interest (I) = (P x T x R) / 100

inputting the values

I = (500 x 5 x 5) / 100

I = 12500/100

I = $125