Answer:
He'll earn 125 in interest after 5 years.
Step-by-step explanation:
Since it's a simple interest rate, we can use the formula to calculate the amount of interest he'll earn in those years. We have:
C = P*i*t
Where C is the amount of interest earned, P is the initial amount invested, i is the interest rate and t is the total time elapsed. For this case we have:
C = 500*0.05*5
C = 2500*0.05
C = 125
He'll earn 125 in interest after 5 years.
