A bank is offering 2.5% simple interest on a savings account. If you deposit $5000, how much interest will you earn in one year?

asked Aug 11, 2017 214k views

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4 votes

Answer:

125.00

Explanation:

Nbering answered Aug 12, 2017

7.7k points

2 votes

Simple Interest Formula
A = P(1 + rt)

where
A = amount
P= Principal
r=rate
t=time

Plugging in:
A = 5000(1 + (0.025 × 1))

Egli Becerra answered Aug 18, 2017

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