Final answer:
Lincoln will earn $3.75 in interest on a $150 deposit in a savings account with a 2.5% yearly interest rate after one year.
Step-by-step explanation:
The student is asking how much interest will be earned in one year on a $150 deposit in a savings account with a yearly interest rate of 2.5%.
To calculate the interest, we use the formula for simple interest, which is Principal × Rate × Time.
In this case, the principal is the amount of money deposited, which is $150, the rate is the interest rate per year, which is 2.5% or 0.025 as a decimal, and the time is 1 year.
The calculation would be:
Interest = $150 × 0.025 × 1 = $3.75
So, if Lincoln deposits $150 into his new savings account with an annual interest rate of 2.5%, he will earn $3.75 in interest after one year.