Question

You deposit $70 in a savings account that pays an annual interest rate

of 3%. How much simple interest would you earn in 2.5 years?

Answer 1

You would earn $4.2, since every year you can get $2.1 for interest, because $70*0.03. Also, the interest only can be count as two years because its annually, so the 0.5 year can't count.