Final answer:
To calculate the simple interest on a $275 deposit at an annual rate of 5% for one year, you use the formula Principal × Rate × Time, which results in interest of $13.75.
Step-by-step explanation:
The question is asking to calculate the simple interest earned on a $275 deposit in a savings account at an annual interest rate of 5% after one year. Simple interest can be calculated using the formula:
Simple Interest = Principal × Rate × Time
Where Principal is the initial amount deposited, Rate is the annual interest rate (in decimal form), and Time is the amount of time that the money is invested or borrowed for, typically in years. Given a $275 deposit (Principal) at an interest rate of 5% (Rate = 0.05) for one year (Time = 1), the calculation for the simple interest is:
$275 × 0.05 × 1 = $13.75
Therefore, the simple interest earned in one year would be $13.75.