Question

Each year on the same day, Susan deposits $175 into a saving account that earns simple interest at a rate of 3.5%. She makes no withdrawals. How much interest does Susan's account earns after 5 years?EXPLAIN SHOW YOUR WORK

A. $18.38
B. $30.65
C. $61.25
D. $91.89

PLZ EXPLAIN I NEED TO UNDERSTAND I HAVE OTHER SIMILAR QUESTIONS SO I NEED TO KNOW HOW TO DO IT THANKS!

Answer 1

The amount after time t will be given by simple interest formula given by:
A=prt/100
where:
principle,p=$175
rate, r=3.5%
time, t=5 years
thus the rate earned after 5 years will be:
A=(175*3.5/100*5)
A=$30.625
Answer: B] 30.65