Lisa deposited $500 in a savings account this morning. The account pays 2.5% simple interest. If Lisa leaves this money in the account for ﬁve years, how much total interest will she earn?

Question

Quizplus · Accepted Answer

Simple interest is calculated using the formula I = PRT, where P is the principal amount ($500), R is the rate (2.5% or 0.025), and T is the time in years (5). So, I = 500 * 0.025 * 5 = $62.50.

Lisa Deposited $500 in a Savings Account This Morning