Question

Find the total amount of interest earned on this savings account. Time: 7 years Interest Rate: 2.5% Principal: $4,556 Interest:

Answer 1

Interest rate is a portion of a loan that is charged as interest. Usually, it is expressed as an annual interest rate. It has two types which are the simple interest rate and the compounding interest rate. For this, we have a simple interest rate. Calculations are as follows:

Interest earned = 4556 x 0.025 x 7 = $797.3

Answer 2

it is, C. $797.30  because 2.5% of $4556 is 182.24