How much interest is earned if $2500 is invested for 25 years at 8% simple

interest?

*

0500

50000

250

O 5000

Answer: $5,000

Step-by-step explanation: First begin with the interest formula.

Interest = Principal * Rate * Time

In this problem, we're solving for the interest.

The principal is the amount invested or $2,500.

The rate is 8% which we can write as. 08.

The time is 25 years.

So we have I = (2,500) (.08) (25).

Now we multiply.

(2,500) (.08) is equal to 200.

Now, multiply 200 (25) to get 5,000.

This means that the interest earned is $5,000.