# 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%?

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 Click here to see ALL problems on percentage 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]