Answer: $5,000
Step-by-step explanation: First begin with the interest formula.
Interest = Principal × Rate × Time
In this problem, we're solving for the interest.
The principal is the amount invested or $2,500.
The rate is 8% which we can write as .08.
The time is 25 years.
So we have I = (2,500)(.08)(25).
Now we multiply.
(2,500)(.08) is equal to 200.
Now, multiply 200(25) to get 5,000.
This means that the interest earned is $5,000.
