Loretta's invested $1000 in a simple interest account yielding 5% paid annually. in 2 yrs she will have $1100 in her account. from this example, we can conclude that $1100 represents the:
A. periodic interest rate.
B. future value of her account
C. simple interest
D. present value of her account

Question

Loretta's invested $1000 in a simple interest account yielding 5% paid annually. in 2 yrs she will have $1100 in her account. from this example, we can  conclude that $1100 represents the:
A. periodic interest rate.
B. future value of her account
C. simple interest
D. present value of her account

XxAngelGirlxX · Answer

Simple interest is P * R * T. So, 5% as a decimal will be. 05, then you do 1000*.05 and get fifty, then in 2 years she'll have 1100 in the account.

The 5% is the annual pay Rate.

(Goolge)