$125 simple interest will be earned within the second year.
We can use a simple interest basis,
A = P(1 + in)
A = 100(1 + 0.05(five) )
= $125 at the stop of the 5th year.
Simple interest is a quick and clean method for calculating the interest price on a loan.
Simple interest is decided with the aid of multiplying the day-by-day hobby fee thru the importance via the use of the range of days that elapse among bills.
Simple interest is calculated with the following system: S.I. = P × R × T, where P = most important, R = rate of interest in % in line with annum, and T = Time, generally calculated as the extensive type of years. The charge of interest is in percentage r% and is to be written as r/100.
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