Answer:
$131.25
Step-by-step explanation:
If Lindsay earns 5% interest after a 2 year period, she would have an increase of $6.25. To figure this out, you would simply multiply 125 by 0.05 since 5% in decimal form is 0.05. The work is shown below.
(125) x (0.05) = 6.25
Since we want to know how much money Lindsay would now have, all we do is add 6.25 to 125.
125 + 6.25 = 131.25