Question

1)

A bank is offering 2.5% simple interest on a savings account. If you deposit $5000,
how much interest will you earn in one year?

Answer 1

• Principal=P=5000
• Rate of interest=R=2.5%
• Time=t=1year
• Interest=I

`\\ \sf\longmapsto I=(PRT)/(100)`

`\\ \sf\longmapsto I=(5000(2.5)(1))/(100)`

`\\ \sf\longmapsto I=(12500)/(100)`

`\\ \sf\longmapsto I=\$ 100`

Answer 2

$125 is the interest that you might earn