Hello!
To solve this exercise about Simple Interest, we have to use the formula below:
[tex]S.I.=P\times R\times T[/tex]• P, = principal (5,500)
,• R, = rate (7% = 0.07 for year)
,• T, = time (1 year)
Let's replace the values in the formula:
[tex]\begin{gathered} S.I.=P\times R\times T \\ SI=5,500\cdot0.07\cdot1 \\ S\mathrm{}I\mathrm{}=385 \end{gathered}[/tex]So, the interest earned in 1 year is $385.
