juan invests $3,000 into an account at an annual rate of 0.55% simple interest for 12 months. 1) what is the…

juan invests $3,000 into an account at an annual rate of 0.55% simple interest for 12 months. 1) what is the principal in this scenario? 1; $3,000; 0.55%; 0.0055 2) what is the interest rate for this account? $3,000; 0.55%; 0.0055; 1 3) what number do you use to represent the interest rate in the simple - interest formula?

juan invests $3,000 into an account at an annual rate of 0.55% simple interest for 12 months. 1) what is the principal in this scenario? 1; $3,000; 0.55%; 0.0055 2) what is the interest rate for this account? $3,000; 0.55%; 0.0055; 1 3) what number do you use to represent the interest rate in the simple - interest formula?

Answer

Explanation:

Step1: Recall principal definition

Principal is the initial amount of money invested. Juan invests $3,000, so that's the principal.

Step2: Recall interest - rate representation

The annual rate is given as 0.55%. This is the interest rate for the account.

Step3: Convert percentage to decimal for formula

To use the interest rate in the simple - interest formula $I = Prt$ (where $I$ is interest, $P$ is principal, $r$ is interest rate, and $t$ is time), we convert 0.55% to a decimal. $0.55%=\frac{0.55}{100}=0.0055$.

Answer:

  1. B. $3,000
  2. B. 0.55%
  3. C. 0.0055