SOLUTION: 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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Question 109231: Paul invested $5000 in a time deposit. What interest will he earn for 1 year if the interest rate is 6.5%
Answer by HyperBrain(694) About Me  (Show Source):
You can put this solution on YOUR website!
The formula for interest is
I=Prt

where I=interest
______P=principal(reference amount)
______r=rate
______t=time
Here, P=5000, r=6.5%25=6.5%2F100=0.065, and t=1

So,
I=%285000%29%280.065%29%281%29=325

Therefore, the interest earned is $325

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HyperBrain!