Question

Holly opened a savings account at a local bank. She deposited $2,500.00 into the account 5 years ago. If the account earns an annual simple interest rate of 7.1%, how much interest has she earned?

A.
$710.00
B.
$887.50
C.
$762.50
D.
$177.50

Answer 1

B.

887.50

Explanation:

`si = p * r * t / 100`

`si \: = 2500 * 7.1 * 5/ 100`

`25 * 7.1 * 5`

`= 887.50`

Answer 2

The correct answer is B $887.5