Question

Mary deposit $ 7000 in a bank account that guarantees a simple interest rate of 8.5% per

year. How much interest will have been added to the account after a period of 5 years?

Answer 1

"$2975" is the correct solution.

Explanation:

Given:

Principle,

P = $7000

Time,

T = 5 years

Interest rate,

R = 8.5

Now,

The interest will be:

=
`(PTR)/(100)`

=
`(7000* 5* 8.5)/(100)`

=
`(297500)/(100)`

=
`2975` ($)