Question

1250 at 5% simple interest for 2 years

Answer 1

First get 5% of 1250.
divide 1250 by 100 = 12.5
12.5 is 1% of 1250
so to get 5% just multiply it by 5
12.5 × 5 is $62.5
this means you earn $62.50 in one year.
in two years, you earn $125 from 5% interet rate in $1250 over 2 years.