Answer:
Answer:
$765
Step-by-step explanation:
If an amount of money, P, called the principal, is invested for a period of t years at an annual interest rate r, the amount of interest, I, earned is given by
I =Prt where
I =interest
P =principal
r =rate
t =time
The following information is given.
Prt=$3,600=4.25%=5 years
Substituting the given information into the simple interest formula and solving for I gives
I =Prt
I =(3,600)(0.0425)(5)
=765
The amount of interest Kelsey earned in 5 years was $765.
