Question

Calculate the account balance and interest earned on a $2,500 deposit into an account that earns 5% per year simple interest for 6 years how much interest did u earn

Answer 1

Given:

$2,500 deposit into an account that earns 5% simple interest for 6 years

Required:

How much interest earn?

Explanation:

The equation for simple interest

$I=Prt$

Where, P principal amount

r rate per year

t time

We have principal amount 2500, rate per year 5% for 6 years

Now,

$\begin{gathered} I=Prt \\ I=2500\times0.05\times6 \\ I=750 \end{gathered}$

Answer:

The simple interest accumulated on a principal of $2500 at a rate of 5% per year for 6 years is $750.