Question

In order to help her save money for college. Lashata's grandparents deposited $10,000 into Savings account five years ago. Lashata has not made any withdrawals or deposits since then. The interest rate on savings account is 3.75% each year. Using simple interest, how much interest has occurred in lashat's saving account?

Answer 1

The interest in Lashata's savings account is $1,875.

Step-by-step explanation:

To calculate the interest earned using simple interest, we can use the formula:

Interest = Principal × Rate × Time

In this case, the principal is $10,000, the rate is 3.75%, and the time is 5 years. Plugging these values into the formula, we get:

Interest = $10,000 × 0.0375 × 5

Interest = $1,875

Therefore, the interest that has occurred in Lashata's savings account is $1,875.