Question

Today, you deposit $2,500 in a bank account that pays 3.6 percent simple interest. how much interest will you earn over the next 5 years? question 4 options:

Answer 1

Given, deposited amount in a bank account = $2500.

Rate of interest given = 3.6%.

We have to find the simple interest for 5 years.

The formula to find the simple interest is

Simple interest = $\frac{Prt}{100}$

Where, P = principal amount, r = rate of interest and t = number of years.

Here given, P= $2500, r = 3.6%, t = 5 years.

Now we by substituting the values in the formula. We will get,

Simple interest = $\frac{(2500)(3.6)(5)}{100}$

= $\frac{(9000)(5)}{100}$

= $\frac{45000}{100}$

= $450$

We have got the required answer. The required simple interest is $450.

Answer 2

Over the next 5 years you will deposit $450.