Loretta invested $1000 in a simple interest account yielding 5% paid annually. In 2 years, she will have $1100 in her account. From this example, we can conclude that 5% represents the:

Question

Mathematics

Aracely Parrish

15 February, 06:29

Loretta invested $1000 in a simple interest account yielding 5% paid annually. In 2 years, she will have $1100 in her account. From this example, we can conclude that 5% represents the:

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Answers (2)

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Deangelo Garner · Answer 1

Simple interest is P * R * T. So, 5% as a decimal will be. 05, then you do 1000*.05 and get fifty, then in 2 years she'll have 1100 in the account.

The 5% is the annual pay Rate.

Marina Sexton · Answer 2

5% represents the Periodic Interest Rate