Question

Zach puts $1000 in a savings account earning 5% simple interest for five years how much interest has he earned at the end of the five years

Answer 1

$250

Explanation:

The formula for simple interest is I = PRT, where I= interest earned or paid, P = principal deposited or borrowed, R = interest rate as a decimal, and T = time in years.

I = PRT

I = (1000)(0.05)(5)

I = 250