Question

An account with an initial balance of $5000 earns 5% interest for 3.5 years.

Answer 1

The investor will earn $875 over the course of 3.5 years.

Explanation:

Sounds like simple interest (not compound interest).

The appropriate formula is i = prt, which here is

i = $5000(0.05)(3.5) = $875

The investor will earn $875 over the course of 3.5 years.