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Nathaly deposited $12,500 in an account earning 4% interest. How much interest will she earn in 5 years?

A$500.00
B$2,500.00
C$625.00
D$25,000.00
Answer & Solution
Correct answer: B. $2,500.00
1. Use the simple interest formula I equals P times r times t. 2. Substitute the given values: I equals 12,500 times 0.04 times 5. 3. Multiply the three values together to get I equals 2,500. 4. Nathaly will earn $2,500 in interest. _Source: OpenStax Elementary Algebra (CC BY 4.0), Ch 3 "Math Models", section 3.2 Solve Percent Applications_
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