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Claire deposited $500 into a savingsaccount that earns 2.5% annual simpleinterest. If she keeps this amount inthe account for 2 years, how muchinterest will she earn?

Respuesta :

Explanation

The interest that would be earned annually is given by the formula

[tex]\begin{gathered} I=\frac{PRT}{100} \\ where\text{ p=deposit=\$500} \\ r=rate=2.5\text{\%} \\ t=time=2years \end{gathered}[/tex]

Therefore;

[tex]I=\frac{500\times2.5\times2}{100}=5\times2.5\times2=25\text{ dollars}[/tex]

Answer: 25 dollars

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