The formula for simple interest is:

$I = P \times r \times t$

Where:

• $I$ is the interest earned,
• $P$ is the principal amount (initial deposit),
• $r$ is the annual interest rate (expressed as a decimal),
• $t$ is the time in years.

Here:

• $P = 10,555$,
• $r = 3.5\% = 0.035$,
• $t = 2$ years.

Now we can calculate the interest:

$I = 10,555 \times 0.035 \times 2$

Let me calculate this for you.The interest earned on a deposit of $10,555 at a 3.5% simple interest rate over 2 years is $738.85.

Would you like more details on how this works or have any other questions?

Here are 5 related questions for further exploration:

1. How does simple interest compare to compound interest over time?
2. What would the total amount in the account be after 2 years, including the interest?
3. How would the interest change if the rate was 5% instead of 3.5%?
4. What happens if the deposit is left in the account for 5 years instead of 2?
5. How does inflation affect the real value of interest earned?

Tip: For long-term savings, compound interest is often more beneficial than simple interest!