Katie borrowed $2,500 at 10% simple interest for 5 years. What was the total interest?

A. $12.50

B. 125.00

C. 1,250.00

D. 12,500.00

2500 *.1 * 5 = $1250

answer is C. 1,250.00

The formula for simple interest is - I = P • r • t

Where:

1.) P is the principle amount (2500.00).

2.) r is the interest rate

10% = 10/100 = (0.1)

3.) t is the time (5)

So your equation should look like.

I = 2500.00 • 0.1 • 5

2500.00 • 0.5

1250.00

I = 1250.00