A woman has a savings account that earns 5% interest annually. If she deposits $

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Question: A woman has a savings account that earns 5% interest annually. If she deposits $2,000, how much interest will she earn in one year?

Options:

Correct Answer: $100

Solution:

Interest earned = $2,000 * 0.05 = $100.

A woman has a savings account that earns 5% interest annually. If she deposits $2,000, how much interest will she earn in one year?

A woman has a savings account that earns 5% interest annually. If she deposits $2,000, how much interest will she earn in one year?

Step 1: Identify the amount of money deposited in the savings account. In this case, it is $2,000.
Step 2: Identify the interest rate. Here, the interest rate is 5%, which can be written as 0.05 in decimal form.
Step 3: To find the interest earned in one year, multiply the amount deposited by the interest rate. So, calculate $2,000 * 0.05.
Step 4: Perform the multiplication: $2,000 * 0.05 = $100.
Step 5: The result, $100, is the amount of interest earned in one year.

Simple Interest Calculation – The question tests the ability to calculate simple interest using the formula: Interest = Principal × Rate × Time.