Question

A bank is offering 2.5% simple interest on a savings account. If you deposit $5000, how much interest will you earn in one year?

Answer 1

125.00

Explanation:

Answer 2

Simple Interest Formula
A = P(1 + rt)

where
A = amount
P= Principal
r=rate
t=time

Plugging in:
A = 5000(1 + (0.025 × 1))