Question

we invested 3500 and an account that pays simple interest of 5% each year how much interest is earned after 10 years

Answer 1

Explanation

The question can be solved using the simple interest formula below;

$I=\frac{\text{PRT}}{100}$

Where P = principal, R= rate and T=time.

From the question, the principal is represented as 3500, the rate as 5% per annum, and the time as 10 years.

We can then substitute the above parameter into the simple interest formula.

$\begin{gathered} I=\frac{3500\times5\times10}{100} \\ I=35\times5\times10 \\ I=1750 \end{gathered}$

Answer: 1750