You make a one-time deposit of $200 earned at your pizzeria job into a bank that pays simple interest. After 5 years, you check your balance and you have $230. How much did you earn in interest each year? Do not include a dollar sign in your answer. Round to the nearest cent (hundredth).

Answer 1

To find out how much interest was earned each year, we can start by calculating the total interest earned over the 5 years.

1. Total interest earned:

   • Initial deposit (principal) = $200
   • Final balance after 5 years = $230
   • Total interest earned = Final balance - Initial deposit = $230 - $200 = $30

2. Interest earned per year:

   • Since this interest was earned over 5 years, we divide the total interest by the number of years: \[ \text{Interest per year} = \frac{\text{Total interest}}{\text{Number of years}} = \frac{30}{5} = 6 \]

Therefore, the amount earned in interest each year is \(6.00\).