A savings account earns 2(1/4)% interest each year. How much interest is earned on a $1,000 deposit after a 5-year period?

A savings account earns 2(1/4)% interest each year. How much interest is earned on a $1,000 deposit after a 5-year period?

Detailed Explanation

Interest = principal × rate × time. Interest = 1,000 *2(1/4)%*5 =1,000*0.0225*5=112.50.