Question

A bank is offering 3.5% simple interest on a savings account. If you deposit

$7,500, how much interest will you earn in 2 years?

Answer 1

Answer: $525

Explanation:

The formula for Simple interest is calculated as PRT where

P = Principal = $7500

R = Rate = 3.5%

T = Time = 2 years

Interest = PRT

= 7500 × 3.5% × 2

= 7500 × 0.035 × 2

= $525