What is the simple interest you would receive in one year on a savings account that earns 5% annual interest if your beginning balance is $255.19?

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Answer 1 · 2017-08-10T04:16:34

Interest is $$ 12.76$ $$12.76$

$$ 255.19$ $$255.19$ is (P)rincipal

$0.05$ $0.05$ is the (R)ate as a decimal or $\frac{5}{100}$ $5/100$

$1$ $1$ year is the (T)ime

$$ 12.76$ $$12.76$ is the (I)nterest earned if you calculate it using the formula

$I = P (R) (T)$ $I = P(R)(T)$

$255.19 (0.05) (1)$ $255.19(0.05)(1)$

$= $ 12.76$ $=$12.76$