Question 1126363
this winds up being simple interest.


her balance was 1450 to start and is still 1450.


she was drawing the interest only.


2% of 1450 = .025 * 1450 = 29.00.


the total interest that the bank sent to her for 5 years is 5 * 29 = $145.00.


the formula would be i = p * r * n


p is the principal
r is the interest rate per time period.
n is the number of time periods.


for her, the formula becomes i = 1450 * .02 * 5 = $145.00


the bank balance never changes since the interest is not deposited into the account, but sent to her.


or, quite possibly, it is credited to the acocunt and immediately withdrawn to be sent to her.