Question

Graduation gift of $5,000 image that you are able to average 2.5% interest on the principal.

1. How much (simple) interest will you receive on your savings after one year?

Answer 1

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$5000\\ r=rate\to 2.5\%\to (2.5)/(100)\dotfill &0.025\\ t=years\dotfill &1 \end{cases} \\\\\\ I = (5000)(0.025)(1) \implies I = 125`