Colin received a bonus check for $2,500. He is going to deposit the money into his bank account that receives 5.5% simple interest. The amount of interest earned each year is
Simple interest formula is Interest = Pit P=principal = 2500 i=annual interest rate = 5.5% = 0.055 t=number of years = 1 So interest = 2500*0.055*1=$137.50 each year.
