Nathaly deposited 12,500 in a bank account that earns 4% simple interest annually. She wants to calculate how much interest she will earn over 5 years using the formula $I = Prt$. Match each variable from the formula to its corresponding value or description from Nathaly's scenario.

As part of a financial literacy training for employees, you are reviewing how to calculate investment returns using Nathaly's 12,500-dollar bank deposit as an example. Recall the structured problem-solving strategy used in this scenario. Arrange the following steps in the correct sequence to determine the simple interest earned.

In the example provided, Nathaly deposited 12,500 dollars into a bank account that earns an annual simple interest rate of ${}4\%$. Based on the simple interest formula $I = Prt$, how much total interest will she earn at the end of 5 years?

In the simple interest formula $I = Prt$ as applied to Nathaly's bank deposit, the annual interest rate of ${}4\%$ is expressed in the equation as the decimal value ____.

Identifying the Principal in Bank Deposits

In a professional training module for bank tellers, you learn to use the simple interest formula $I = Prt$ to help clients estimate their earnings. If a client named Nathaly deposits 12,500 dollars into an account earning an annual simple interest rate of ${}4\%$ for 5 years, the correct equation setup to calculate the total simple interest she will earn is $I = (12{,}500)(0.04)(5)$.

Recalling the Five-Step Strategy for Simple Interest Calculations