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

Colt Austin

Mathematics

29 January, 17:02

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:

+5

Answers (2)

Know the Answer?

Leonard Mckenzie · Answer 1

5% represents the Periodic Interest Rate

Caitlyn · Answer 2

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.