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: $$ \$ \square $$

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To determine the interest Joey will earn and the total balance in his savings account after 5 years with simple interest, follow these steps:

### 1. **Understand the Simple Interest Formula**
The formula for calculating simple interest is:

$$
\text{Interest} = P \times r \times t
$$

Where:
- $$ P $$ = Principal amount (initial deposit)
- $$ r $$ = Annual interest rate (in decimal form)
- $$ t $$ = Time the money is invested (in years)

### 2. **Given Values**
- **Principal ($$ P $$)**: \$2,500
- **Annual Interest Rate ($$ r $$)**: 1.75\% 
- **Time ($$ t $$)**: 5 years

### 3. **Convert Percentage to Decimal**
Convert the annual interest rate from a percentage to a decimal:

$$
1.75\% = \frac{1.75}{100} = 0.0175
$$

### 4. **Calculate the Interest Earned**
Plug the values into the simple interest formula:

$$
\text{Interest} = 2500 \times 0.0175 \times 5
$$

$$
\text{Interest} = 2500 \times 0.0875 = \$218.75
$$

### 5. **Determine the Total Balance**
Add the interest earned to the principal to find the total balance after 5 years:

$$
\text{Total Balance} = \text{Principal} + \text{Interest} = 2500 + 218.75 = \$2,718.75
$$

### **Answer:**
- **Interest Earned:** \$218.75
- **Total Balance After 5 Years:** \$2,718.75
Joey will earn \$218.75 in interest over 5 years. The total balance in his account will be \$2,718.75.

Question 20
Joey deposits into a savings account. The account pays 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:

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Question 20 Joey deposits into a savings account. The account pays 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: