To find the amount of interest Kenny will earn in 1 year, we need to multiply his initial amount by the interest rate.
$500 x 0.05 = $<<500*0.05=25>>25
Therefore, Kenny will earn $25 in interest in 1 year.
Kenny has $500 in an account. The interest rate is 5% compounded annually.
To the nearest cent, how much interest will he earn in 1 year?
1 answer