Question

Ms. Paul deposited $500 into a savings account at a local bank that earned 5.5% interest per year. How much interest does she earn per year for 5 years?

Answer 1

Convert the interest into decimal by dividing it by 100%

$5.5\%\div100\%=0.055$

Next, multiply it by the amount of deposit

$\ 500\times0.055=\ 27.5$

Therefore, Ms. Paul will earn $27.5 interest per year for 5 years.