kelly deposited $2,500 into a savings account with a 21% simple interest rate. after 2 years how much…
kelly deposited $2,500 into a savings account with a 21% simple interest rate. after 2 years how much interest did kelly earn? hint: i = prt
Answer
Explanation:
Step1: Identify the values of P, R, and T
$P = 2500$ (principal amount), $R=0.21$ (21% expressed as a decimal), $T = 2$ (time in years)
Step2: Apply the simple - interest formula
$I=PRT$ $I=2500\times0.21\times2$ $I = 2500\times0.42$ $I = 1050$
Answer:
$1050$