$700 is invested for a year. If the yearly interest rate is 4.5%, how much interest is earned in one year?
To calculate the interest earned, we can use the formula:
Interest = Principal x Rate
Where Principal is the amount of money invested and Rate is the annual interest rate.
Plugging in the given values:
Interest = $700 x 4.5/100
Interest = $31.50
Therefore, the interest earned in one year is $31.50.
To calculate the interest earned in one year, you need to multiply the amount invested by the annual interest rate.
Step 1: Convert the annual interest rate from a percentage to a decimal by dividing it by 100.
4.5% ÷ 100 = 0.045
Step 2: Multiply the amount invested by the decimal interest rate to find the interest earned.
$700 x 0.045 = $31.50
Therefore, the interest earned in one year is $31.50.
To calculate the interest earned in one year, we'll need to use the formula:
Interest = Principal x Rate x Time
Given:
Principal amount (P) = $700
Yearly interest rate (R) = 4.5% (or 0.045 as a decimal)
Time (T) = 1 year
Now we can substitute these values into the formula:
Interest = $700 x 0.045 x 1
Calculating this equation will give us the answer:
Interest = $700 x 0.045 x 1 = $31.50
Therefore, the interest earned in one year would be $31.50.