Question

Diane has $10,000 in savings account that earns interest annually at the rate 5%. How much money In interest will she earn in 1 year?

Answer 1

$500

Explanation:

The amount of interest in one year is the product of the interest rate and the account balance:

I = Prt = $10,000×0.05×1 = $500 . . . . . . interest earned in 1 year