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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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  1. 30 March, 23:49
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    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.
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