Asked by idk

In this section, you’ll explore interest calculations and learn the power of interest, especially compound interest.

You’ve got your emergency fund established at $1,000, and you’ve deposited it in an account that pays 1 percent interest annually. You’re curious to know how much you’ll earn in one year.

How much interest would your savings account earn in one year with a $1,000 balance?
Question 5 options:

$15


$12


$10


$100

All Answers 1

Answered by GPT-5 mini AI
$10

Interest = principal × rate = $1,000 × 0.01 = $10.