Answer:
A = $625.00
(I = A - P = $125.00)
Equation:
A = P(1 + rt)
Step-by-step explanation:
Answer: $125
Step-by-step explanation: The formula for simply interest = P x R x T where P equals the principle, R equals the rate in decimal format and T equals time in the number of years.
Your formula for this problem is: $500 x .05 x 5 = $125. Therefore, you would earn $125 in interest over five years.
