Pam deposited $890 in a savings account, with three percent simple interest. How much interest will she earn in five years?

1.) 26.70

2.) 133.50

3.) 103.30

4.) 96.33

The answer is option 2. Pam will earn an interest of $133.50 from his savings account of $890 with an interest of 3%. Simple interest, also known as flat rate interest, is an interest to be paid or earned each year having a fixed percentage from a principal amount. It is calculated as follows:

$890 x. 03 x 5 = $133.50