Question 77005
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]