My Learning Cart
?
Categories
Account

A person invests $1,000 at an interest rate of 5% per annum. How much interest w

₹0.0
Login to Download
  • 📥 Instant PDF Download
  • ♾ Lifetime Access
  • 🛡 Secure & Original Content

What’s inside this PDF?

Question: A person invests $1,000 at an interest rate of 5% per annum. How much interest will he earn in one year?

Options:

  1. $40
  2. $50
  3. $60
  4. $70

Correct Answer: $50

Solution: 

Interest = 5% of 1,000 = 50.

A person invests $1,000 at an interest rate of 5% per annum. How much interest w

Practice Questions

Q1
A person invests $1,000 at an interest rate of 5% per annum. How much interest will he earn in one year?
  1. $40
  2. $50
  3. $60
  4. $70

Questions & Step-by-Step Solutions

A person invests $1,000 at an interest rate of 5% per annum. How much interest will he earn in one year?
Correct Answer: 50
  • Step 1: Understand that the person is investing $1,000.
  • Step 2: Know that the interest rate is 5% per year.
  • Step 3: Convert the percentage to a decimal by dividing by 100. So, 5% becomes 0.05.
  • Step 4: Multiply the amount invested ($1,000) by the decimal interest rate (0.05).
  • Step 5: Calculate $1,000 * 0.05, which equals $50.
  • Step 6: Conclude that the interest earned in one year is $50.
  • Simple Interest Calculation – Understanding how to calculate simple interest using the formula: Interest = Principal × Rate × Time.
Soulshift Feedback ×

On a scale of 0–10, how likely are you to recommend The Soulshift Academy?

Not likely Very likely
Home Practice Performance eBooks