Question

Pancho saved $1250 over the year from a part time job. He decided to take $850 of it to the bank

where it will earn 1.5% interest. How much interest will he earn if he leaves it there for 2 years?

Answer 1

Pancho will earn $25.50 interest.

Explanation:

interest= prt (principal x rate x time)

i= prt = 850(.015)(2)

i= 25.5

(.015 comes from dividing the percentage 1.5 by 100)