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What is the annual interest paid on an account that has a $1000 balance if the rate is [tex]7\frac{1}{2}[/tex]%?

Sagot :

The annual interest paid on the account is $75

How to determine the annual interest

The formula for determining annual interest is given as;

Interest = PRT/100

where;

  • P is the principal amount = $1000
  • R is the rate = 7. 5%
  • T is the time = 1 year, since it's an annual payment

Substitute the values

Annual Interest = 1000 × 7. 5 × 1/ 100

Annual interest = 7500/ 100

Annual interest = $75

Thus, the annual interest paid on the account is $75

Learn more about interest here:

https://brainly.com/question/1115815

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