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Intermediate Algebra

OPENSTAX

$Math Studyset Vaia Explanations$ Math

OER 2017 Edition · 1346 pages

ISBN: 9780998625720

Chapter 2: Q. 2.49 (page 126)

Nathaly deposited $$ 12500$ in her bank account where it will earn $4 %$ simple interest. How much interest will Nathaly earn in $5$ years?

Short Answer

Expert verified

Interest earned by Nathaly in $5$ years = $$ 2500$

Step by step solution

01

Step 1. Expression for the simple interest,

Interest = $p r t$

Here, $p =$ Principal amount

$r =$ rate of interest

$t =$ Duration of investment

02

Step 2. Substitute the values in the expression,

From the question,

$p = $ 12500$

$r = 4 %$

$t = 5$ years

Interest = $12500 \times 0.04 \times 5$

= $$ 2500$

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