Ask a New Question
Menu

Suzanne deposited $2,500 in a savings account earning 3.5% simple interest. What was the total interest earned after 6 years?

Question 2 options:

$525

$4,500

$52.50

$450

1 answer

To calculate the total interest earned, we need to use the formula: Interest = Principal (the amount initially deposited) x Rate x Time.

In this case:
Principal = $2,500
Rate = 3.5% = 0.035 (as a decimal)
Time = 6 years

So, Interest = $2,500 x 0.035 x 6

Calculating this expression:

Interest = $525

Therefore, the total interest earned after 6 years is $525. The correct option is $525.