Question

Amelia invests money in an account paying simple interest. She invests $100 and no money is added or removed from the investment. After one year, she has $101. What is the simple percent interest per year?

Answer 1

Let's see

• Principal=$100
• Final=$101

Total interest earned=101-100=$1

Now

• Interest rate=1/100×100=1%

Answer 2

`\textsf {1 percent}`

Explanation:

`\textsf {Simple Interest Formula :}`

`\mathsf {I = P * r * t}`

`\textsf {Given :}`

`\textsf {I = 101 - 100 = 1}`

`\textsf {P = 100}`

`\textsf {t = 1}`

`\textsf {Solving :}`

`\mathsf {1 = 100 * 1 * r}`

`\mathsf {r = (1)/(100)}`

`\mathsf {r = 0.01}`

`\textsf {r = 1 percent}`