Suppose you make a one-time deposit of $500 in a savings account. The account has an APY of 0.5%. How much interest would you earn, in dollars, after one year? ( )

I= $25

Explanation:

Giving the following information:

PV= $500

APY (i)= 0.05

The annual percentage yield (APY) is the real rate of return. It is the interest rate with the compound factor already incorporated.

To know the interest earned, we need to use the following formula:

I= PV*i

I= 500*0.05

I= $25

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