Question

Mikaela will invest $2,500 in an account that pays her 7.5% over 2 years. How much interest will she receive? Also, how much will she make total?

Answer 1

i. $375

ii, $2875

Explanation:

Given

Princinpal= $2,500

rate= 7.5%

time= 2 years

Required,

The simple interest, and the final amount

Step two:

SI= PRT/100

SI= 2500*7.5*2/100

SI=37500/100

SI=$375

The simple interest is $375

And the final amount = $2,500 +$375= $2875