SOLUTION: Business and finance. Paul invested $5000 in a time deposit. What interest will he earn for 1 year if the interest rate is 6.5%?

Question 77005: Business and finance. Paul invested $5000 in a time deposit. What interest will
he earn for 1 year if the interest rate is 6.5%?
Answer by tutorcecilia(2152) (Show Source): You can put this solution on YOUR website!
Use the formula for simple interest:
Interest = (Principle)(rate)(time)
I=Prt
.
Plug-in the values and solve for the Interest:
I=(5,000)(.065)(1) [change the percent to a decimal number]
I=$325
.
check by plugging all of the values back into the original equation:
I=Prt
325=(5000)(.065)(1)
325=325 [checks out]

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