Question

Shaq deposits $2,900 in a bank account that offers 5% simple interest on a savings account. How much interest will Shaq earn in 5 years?

Answer 1

Explanation:

To calculate the simple interest earned, you can use the formula:

Simple Interest = Principal (P) * Rate (R) * Time (T)

Where:

- Principal (P) is the initial amount deposited, which is $2,900 in this case.

- Rate (R) is the annual interest rate, which is 5% or 0.05 as a decimal.

- Time (T) is the number of years, which is 5 years in this case.

Now, plug in the values and calculate the interest:

Simple Interest = $2,900 * 0.05 * 5

Simple Interest = $2,900 * 0.25

Simple Interest = $725

Shaq will earn $725 in interest over 5 years on his $2,900 deposit.