alleryNathaly deposits $12,500 at 4% simple interest. In 5 years she earns:
A$1,250
B$2,500
C$500
D$5,000
Answer & Solution
Correct answer: B. $2,500
1. Multiply 12,500 by 0.04.
2. That gives 500 a year.
3. Over 5 years it is 2,500.
_Source: OpenStax Elementary Algebra 2e, Chapter 3, Solve Percent Applications (CC BY 4.0)._
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