Suzanne deposited $2,500 in a savings account earning 3.5% simple interest. What was the total interest earned after 6 years?
Question 2 options:
$525
$4,500
$52.50
$450
To calculate the total interest earned, we need to use the formula: Interest = Principal (the amount initially deposited) x Rate x Time.
In this case:
Principal = $2,500
Rate = 3.5% = 0.035 (as a decimal)
Time = 6 years
So, Interest = $2,500 x 0.035 x 6
Calculating this expression:
Interest = $525
Therefore, the total interest earned after 6 years is $525. The correct option is $525.