Question

stacy started with $40 in a savings account that earns 5% annually. how much interest will she get in one year? interest = $

Explanation:

Step1: Recall the simple interest formula

The formula for simple interest is $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Identify the values

Here, $P = \$40$, $r = 5\% = 0.05$ (converted to decimal), and $t = 1$ year.

Step3: Calculate the interest

Substitute the values into the formula: $I = 40 \times 0.05 \times 1$.
First, calculate $40 \times 0.05 = 2$. Then multiply by $1$ (which doesn't change the value), so $I = 2$.

Answer:

$\$2$