Answer:
10%
Step-by-step explanation:
Use the formula of simple interest:
[tex]A=P(1+rt)[/tex]
We can determine the interest rate if he earns $5 a year. Which means after a year he will have $55. Let A be the final amount after year t with t=1:
[tex]55=50(1+r(1))[/tex]
Solve for r, the interest rate:
[tex]5=50r[/tex]
[tex]r=5/50=0.1[/tex]
Jeremy will earn money in the firsts year at a interest rate of 10%
