Question

$2500 in saving account earing 3,5 perccent interest. what was the the total interest earnedin 6 years

Answer 1

`I=\$525`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=6\ years\\ P=\$2,500\\r=3.5\%=3.5/100=0.035`

substitute in the formula above

`I=\$2,500(0.035*6)`

`I=\$525`