Answer:
$27.50
Step-by-step explanation:
The amount of interest she will earn in a year is basically the initial amount multiplied by the rate of interest per year (in decimal).
We have to first convert 5 1/2% to decimal.
First,
1/2 means 0.5 (by dividing), so it becomes:
5.5%
Converting percentage to decimal is easy. We divide by 100, so we have:
5.5/100 = 0.055
Now we multiply:
500 * 0.055 = $27.5
So, in 1 year, Isabella earns an interest of $27.50
