Question

Tommy has $1,250 to invest. He puts it in

a bank account that earns 3% interest
annually. How much money will he earn
in interest after 7 years?

Answer 1

The answer is 1,512.50

Answer 2

$1,512.50

Explanation:

1,250 x 0.03 = 37.50

37.50 x 7 = 262.50

1,250 + 262.50 = 1,512.50