Question

Jonah deposited $500 in a savings account, which pays 2.5 percent interest. If he keeps it in the account for 3 and a half years, how much interest will he earn?

Answer 1

$500x2.5%=$12.50. That's one years worth of interest... multiply that by 3, and you get $37.50. Divide $12.50 by two so you can get the half of the year...you get $6.25. $37.50+$6.25=$43.75 is how much interest he will earn.