Question

Suzanne deposited $2,500 in a savings account earning 3.5% simple interest. What was the total interest earned after 6 years? Question 2 options:

$52.50



$450



$525



$4,500

Answer 1

Answer: $525 (choice C)

Work shown:

P = 2500 is the deposit amount, r = 0.035 is the decimal form of 3.5% interest, and t = 6 is the number of years. All of these values are plugged into the formula below:

i = P*r*t

i = 2500*0.035*6

i = 525