Question 20 Joey deposits \( \$ 2,500 \) into a savings account. The account pays \( 1.75 \% \) simple interest at an annual rate. How much interest will he earn if he makes no additional deposits or withdrawals for 5 years? What will be the total balance of his account? Interest: \( \$ \square \)

To calculate the simple interest earned over 5 years, use the formula: \[ \text{Interest} = P \times r \times t \] where \( P \) is the principal amount (\$2,500), \( r \) is the annual interest rate (1.75% or 0.0175), and \( t \) is the time in years (5). So, the interest will be: \[ \text{Interest} = 2500 \times 0.0175 \times 5 = \$218.75 \] Thus, Joey will earn \( \$218.75 \) in interest. Adding this to the initial deposit: Total balance = Principal + Interest = \( 2500 + 218.75 = \$2718.75 \). So the total balance of his account after 5 years will be \( \$2718.75 \).