Question

Fiona has $998 in her savings account. If the bank pays 2.5% simple interest on savings, how much does she earn in one year?

A.
$24.95

B.
$399.20

C.
$2,495

D.
$294.86

Answer 1

The answer would be A: $24.95

Answer 2

Answer is A. $24.95

I just multiple 998 by 0.025 to get 24.95

2.5%=0.025