Question

What is the interest if principal is $1000, with an interest rate of 5% for a
term of 1 year. *
5000
50
500
5
0.50

Answer 1

Answer:

$50

Explanation:

Interest is calculated using the formula

I = p x r x t

where I = interest

p = the principal amount: $1000

r = interest rate:  5% or 0.05

t = time in years: 1

I = $1000 x 0.05 x 1

I = $50

Interest = $50

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