Question

edward deposited ​$7,500 into a savings account 5 years ago. The simple interest rate is 5​%. How much money did earn in​ interest?

Answer 1

Edward earned $1,875 in interest.

Explanation:

The formula for simple interest is i = prt, where p is the principal, r is the interest rate as a decimal fraction, and t is the time in years.

Here, p = $7,500, r = 0.05 and t = 5 years, and so the interest earned was

i = ($7,500)(0.05)(5) = $1,875.

Edward earned $1,875 in interest.