The interest earned on a $5000 deposit with a simple interest rate of 2.5% for one year is $125.
To calculate the interest earned on a savings account, you can use the formula: Interest = Principal × Interest Rate × Time. In this case, the principal (amount deposited) is $5000, the interest rate is 2.5% (or 0.025 as a decimal), and the time is 1 year. Plugging in these values, we get:
Interest = $5000 × 0.025 × 1 = $125.
Therefore, you will earn $125 in interest on your $5000 deposit after one year.
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