This answer is incorrect.
To do this problem you must convert 5.5% to a decimal. To convert any percentage to a decimal you just move the decimal point two places to the left and drop the percentage symbol.
5.5% = 0.055
Next you multiply the interest rate and the principal.
4000 x 0.055 = 220.00 this is the interest for one year.
Now let us try another one
George puts $5,400 in a savings account at an annual interest rate of 6.5%. Approximately how much interest will the principal earn in 2 years?
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