Question

Ann has her money in a bank account that pays her 2.0% interest each year on the amount of money held in her account. At the end of each year, the bank sends Ann a check for the interest she has earned and she spends it. Ann has kept $1450 in her bank account for the past five years. What is the total amount of interest, in dollars, that the bank has sent to Ann over the past five years?

Answer 1

$\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\to& \ 1450\\ r=rate\to 2\%\to \frac{2}{100}\to &0.02\\ t=years\to &5 \end{cases} \\\\\\ I=(1450)(0.02)(5)$