kenny has $500 in an account. the interest rate is 5% compounded annually. to the nearest cent, how much…

Explanation:

Step1: Identify the formula for simple - interest

The formula for simple interest when compounded annually for 1 year is $I = P\times r$, where $P$ is the principal amount and $r$ is the interest rate.

Step2: Convert the interest rate to a decimal

The interest rate $r = 5%=\frac{5}{100}=0.05$. The principal amount $P = 500$.

Step3: Calculate the interest

Substitute $P = 500$ and $r=0.05$ into the formula $I = P\times r$. So $I=500\times0.05 = 25$.

Answer:

$25.00$