Answer:
$1850.
Step-by-step explanation:
We are asked to find amount of interest earned in one year on an amount of $5000.
We will use simple interest formula to solve our given problem.
[tex]I=Prt[/tex], where,
I = Amount of interest earned,
r = Annual interest rate in decimal form.
t = Time in years.
Let us convert our given interest rate in decimal form.
[tex]37\%=\frac{37}{100}=0.37[/tex]
Upon substituting our given value in simple interest formula, we will get:
[tex]I=\$5000\times 0.37\times 1[/tex]
[tex]I=\$5000\times 0.37[/tex]
[tex]I=\$1850[/tex]
Therefore, an amount of $1850 is earned as interest in one year.
