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23 October, 00:58

A bank is offering 2.5% simple interest on a savings account. If you deposit $5000, how much interest will you earn in one year?

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  1. 23 October, 01:32
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    Simple Interest Formula

    A = P (1 + rt)

    where

    A = amount

    P = Principal

    r=rate

    t=time

    Plugging in:

    A = 5000 (1 + (0.025 * 1))
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