. Question 20 If Principal= 500 Interest rate=5% and Time=5years What is the interest earned - toy ast 125 1. 195 1. tits

To calculate the interest earned, we can use the formula for simple interest:<br /><br />\[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \]<br /><br />Given:<br />- Principal = $500<br />- Rate = 5% (or 0.05 as a decimal)<br />- Time = 5 years<br /><br />Plugging in the values:<br /><br />\[ \text{Interest} = 500 \times 0.05 \times 5 \]<br /><br />\[ \text{Interest} = 500 \times 0.25 \]<br /><br />\[ \text{Interest} = 125 \]<br /><br />Therefore, the interest earned is $125.