Answer:
Correct answer is $7,500
Step-by-step explanation:
To solve, use the simple interest formula to solve.
I = Prt
Principle (p): 25,000
Rate (r): 6%
Time (t): 5
Were trying to find i (interest):
converting R percent to r a decimal
6%/100 = 0.06 per year,
then, solving our equation
I = 25000 × 0.06 × 5 = 7500
I = $ 7,500.00
The simple interest accumulated on a principal of $ 25,000.00 at a rate of 6% per year for 5 years is $ 7,500.00.
