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).(1 point)

Question

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Answer 1

To find out how much you earned in interest each year, we first need to determine the total interest earned over the 5 years.

The initial deposit (principal) is $200, and after 5 years, the total amount is $230. Thus, the total interest earned during this period is:

Total Interest = Total Amount - Principal Total Interest = $230 - $200 = $30

Now, to find the annual interest earned, we divide the total interest by the number of years:

Annual Interest = Total Interest / Number of Years Annual Interest = $30 / 5 = $6

So, the amount earned in interest each year is:

6.00