Question

Im struggling a lot with this question have good day

Answer 1

well, 2 and 1/2 is just 2 + 1/2 or just 2.5, so 2.5%.

`~~~~~~ \stackrel{ \textit{\LARGE 8 years} }{\textit{Simple Interest Earned}} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$250\\ r=rate\to 2.5\%\to (2.5)/(100)\dotfill &0.025\\ t=years\dotfill &8 \end{cases} \\\\\\ I = (250)(0.025)(8) \implies I = 50`

how about after 1 year? well, we simply set t = 1, so (250)(0.025)(1) = 6.25.

would the interest for t = 2 be the same as for t = 1, if t = 2 is calculated, anyhow, the wording is a bit poor, let me reword it.

after the 1st year, she has an accumulated amount of 250 + 6.25 = 256.25.

now, if for the 2nd year we use the same 2.5% rate BUT we use the accumulated amount of $256.25 to get the interest, instead of the initial $250, will they be the same?

well, hell no, because (250)(0.025)(2) using the inital amount

is not the same as (256.25)(0.025)(2).

bear in mind that simple interest is calculated for each year using the initial amount or deposit, not the accumulated amount thus far.