Given:
$2,500 deposit into an account that earns 5% simple interest for 6 years
Required:
How much interest earn?
Step-by-step explanation:
The equation for simple interest
Where, P principal amount
r rate per year
t time
We have principal amount 2500, rate per year 5% for 6 years
Now,
Answer:
The simple interest accumulated on a principal of $2500 at a rate of 5% per year for 6 years is $750.