Question

Jason deposited $280 into a bank account paying 2.5% simple annual interest. At this simple interest rate, about how much would it be the interest after five years?

Answer 1

Jason will have earned $35 in simple interest.

Explanation:

Simple interest = Principal *rate *time

S.I = P * r * t

Principal = the amount deposited = $280

rate = 2.5%

time = 5 years

S.I = 280 *2.5% *5

S.I = 7*5

S.I = $35

Therefore, in 5 years, Jason will have earned $35 in simple interest.