Question

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?

Answer 1

[AI-generated answer — Bot GPT 3.5]

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.