Suppose $ 1,250 is placed in a savings account over 2 years. Find the interest earned if the rate is 4.5%

Question

asked Nov 20, 2022 125k views

2 Answers

Itodd · Answer 1 · 2022-11-25T05:45:20+0000

Answer: $112.50

Explanation:

The Simple interest will be calculated using:

= Principal × Rate × Time

= 1250 × 4.5% × 2

= 1250 × 0.045 × 2

= $112.50

Therefore, the interest earned will be $112.50