Tim deposited $2,500 into an account. He made no additional deposits or withdrawals. Tim earned 5.25% annual simple interest on the money in the account. What was the balance in dollars and cents in Tim’s account at the end of 5 years?
The simple interest earned on the account for 5 years is 5*5.25%=5*525%=26.25%. The interest earned in dollars is calculated by multiplying the interest rate in decimal form by the deposit: $2,500*26.25%=0.2625*2500=$<<0.2625*2500=656.25>>656.25. Since Tim did not make any additional deposits or withdrawals, the balance in the account at the end of 5 years is the initial deposit plus the interest earned: $2,500+$656.25=$<<2500+656.25=3156.25>>3,156.25. Answer: \boxed{3,156.25}.
