Question

Ernie has another account at the bank that pays 2½% simple interest. How

much interest will he earn in 8 years on an initial deposit of $250?

Answer 1

$50

Explanation:

To find the amount of interest earned in 8 years, we can use the formula:

interest = principal * rate * time

where "principal" is the initial deposit, "rate" is the interest rate, and "time" is the number of years the interest is compounded.

Plugging in the values from the problem, we get:

interest = $250 * 2.5% * 8 years

interest = $250 * 0.025 * 8

interest = $50

So Ernie will earn $50 in interest in 8 years on his initial deposit of $250.

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