Question

Colin received a bonus check for $2,500. He is going to deposit the money into his bank account that receives 5.5% simple interest. The amount of interest earned each year is

Answer 1

Simple interest formula is
Interest = Pit
P=principal = 2500
i=annual interest rate = 5.5% = 0.055
t=number of years = 1
So
interest = 2500*0.055*1=$137.50 each year.