Answer:
$50 interest
Step-by-step explanation:
Simple interest formula
I = Prt
where:
- I = interested earned
- P = principal amount
- r = interest rate (in decimal form)
- t = time (in years)
Given:
- P = $500
- r = 2% = 0.02
- t = 5 years
Substitute the given values into the formula and solve for I:
⇒ I = 500 · 0.02 · 5
⇒ I = 50
Therefore, Frank will earn $50 interest in 5 years.
