By formula,
[tex]A=P(1+\frac{r}{100})^n[/tex]Where A = amount =? P=Principal = $2,500, r = rate =6.5% and n= number of years = 1 year (Assumed)
Let assume the period of investment to be one year since the question is silent about the duration of the investment.
[tex]A=2500(1+\frac{6.5}{100})^1=2500(1.065)=\text{ \$2,662.50}[/tex]Recall: A = P + I .....eqn(1)
Making I the subject of the equation labeled eqn(1), we get,
I = A - P
I = 2662.50 - 2500 = $162.50
So, the interest on $2500 for the period of one year is $162.50
