I will assume it is 2.5% interest rate over 2 years and not per year. If this isn’t the case then let me know. - - Well $1250 divided by 100 = $12.50 This is 1%- - - To make 2.5% we do-> $12.50 x 2.5= $31.25 This makes our interest rate $31.25 - - - - To get our total amount..... $1250 + $31.25 = $1281.25
