Question

1)
A bank is offering 2.5% simple interest on a savings account. If you deposit $5000,
how much interest will you earn in one year?

Answer 1

Answer:

$125 is the interest that you might earn

Answer 2

• Principal=P=5000
• Rate of interest=R=2.5%
• Time=t=1year
• Interest=I

$\\ \sf\longmapsto I=\dfrac{PRT}{100}$

$\\ \sf\longmapsto I=\dfrac{5000(2.5)(1)}{100}$

$\\ \sf\longmapsto I=\dfrac{12500}{100}$

$\\ \sf\longmapsto I=\ 100$