Answer: $52.50
Step-by-step explanation:
There is $50 in the account and it earns interest at a rate of 5% a year.
This interest is not compounded therefore it is simple interest.
To calculate amount earned with simple interest is:
= Deposit * ( 1 + rate * time)
= 50 * ( 1 + 5% * 1 year)
= $52.50
