Question

Joey borrowed $2,750 from

the bank at 5% simple interest
for 5 years. How much is Joey
going to pay in interest?

Answer 1

Joey is going to pay $687.5

In all Joey is going to pay $3437.5

Explanation:

To get 687.5 you have to do $2750 x 0.05 x 5 years

That gets you 687.5

Answer 2

Simple Interest: $3.44

Annually Compounded Interest: $3.51