Colin received a bonus check for $2,500. He is going to deposit the money into his bank account that receives 5.5% simple interest. The amount of interest earned each year is

Question

Mathematics

Glenn Nolan

30 March, 20:07

Colin received a bonus check for $2,500. He is going to deposit the money into his bank account that receives 5.5% simple interest. The amount of interest earned each year is

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Answers (1)

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Josue Allison · Answer 1

Simple interest formula is

Interest = Pit

P=principal = 2500

i=annual interest rate = 5.5% = 0.055

t=number of years = 1

So

interest = 2500*0.055*1=$137.50 each year.