Question

Luis puts $2,500 into an account that earns 5% interest per year for 3 years. Find the amount of interest earned on the account

Answer 1

$375

Explanation:

Given data

Principal= $2500

Rate= 5%

TIme = 3 years

We know that the expression for the simple interest is given as

SI=PRT/100

Substitute

SI= 2500*5*3/100

SI= 37500/100

SI= $375