Question

Travis invests 25,000$ in a savings account that pays 2.75% simple interest. How much interest does he earn each year?

A 787.50$
B 625.00$
C 657.50$
D 687.50$

Answer 1

I believe you start with 25,000 and multiply it by 0.0275 (2.75%) and you get D, $687.5 as your answer.

Answer 2

Since Travis invest $25,000 in a savings account, and the account pays 2.75% simple interest, I believe you will need to multiply 25,000 by 2.75.
25,000x2.75=$687.50
Therefore, it would be D: $687.50