Question

marsha deposited $9,500 into a savings account 5 years ago. the simple interest rate is 5%. how much money did marsha earn in interest?
substitute the values into the equation
interest = $□ · □ · □ years

Explanation:

Step1: Recall simple interest formula

The formula for simple interest is \( I = P \times r \times t \), where \( I \) is the interest, \( P \) is the principal amount, \( r \) is the annual interest rate (in decimal), and \( t \) is the time in years.

Step2: Identify values

• Principal \( P = \$9500 \)
• Interest rate \( r = 5\% = 0.05 \) (converted to decimal)
• Time \( t = 5 \) years

Step3: Substitute into the formula

Substitute \( P = 9500 \), \( r = 0.05 \), and \( t = 5 \) into \( I = P \times r \times t \). So the equation becomes Interest \( = \$9500 \times 0.05 \times 5 \) years.

Step4: Calculate the interest

First, calculate \( 9500\times0.05 = 475 \). Then, \( 475\times5 = 2375 \).

Answer:

The interest earned is \(\$2375\), and the substituted values are \( 9500 \), \( 0.05 \), and \( 5 \) (so Interest \( = \$9500 \cdot 0.05 \cdot 5 \) years).