A saver knows that if she put $95 in the bank today she will receive $100 from the bank one year from now, including the interest she will earn. What is the interest rate she is earning?
A) 5.10%
B) 6.00%
C) 5.52%
D) 5.26%

Question

Quizplus · Accepted Answer

To find the interest rate, we need to use the formula: 
Interest = Principal x Rate x Time
where Principal is $95, Time is 1 year, and Interest is $5. 
Substituting these values, we get: 
5 = 95 x Rate x 1
Rate = 5/95 = 0.0526 or 5.26%
Therefore, choice D is correct.

A Saver Knows That If She Put $95 in the Bank