2. kelly opened a bank account that earns 1.2% simple interest each year. after 7 years, kelly will earn…

Explanation:

Step1: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount (initial deposit), $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the interest rate to decimal

The annual interest rate $r = 1.2%=0.012$, $t = 7$ years, and $I=$126$.

Step3: Rearrange the formula to solve for $P$

From $I = Prt$, we can solve for $P$ by dividing both sides of the equation by $rt$. So $P=\frac{I}{rt}$.

Step4: Substitute the values into the formula

Substitute $I = 126$, $r = 0.012$, and $t = 7$ into the formula $P=\frac{I}{rt}$. $P=\frac{126}{0.012\times7}$. First, calculate $0.012\times7 = 0.084$. Then, $P=\frac{126}{0.084}=1500$.

Answer:

$1500$