kenny has $500 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much…

Explanation:

Step1: Identify the interest - formula

The simple - interest formula for annual compounding (when $t = 1$ year) is $I=P\times r$, where $P$ is the principal amount and $r$ is the annual interest rate.

Step2: Substitute the values

Given $P = 500$ and $r=0.05$ (since $5%=0.05$), then $I = 500\times0.05$.

Step3: Calculate the interest

$I=25.00$

Answer:

$25.00$