Interest problem from Cliffs

[1999TL]

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A savings account earns 2 1/4% interest each year. How much interest is earned on a $1000 deposit after a 5 year period.
A. $22.50
B. $100.00
c. $112.50
D. $124.00
E. $150.00

They get C. I've done the Kaplan stuff online(which is much much harder than this stupid Cliff's), but this just doesn't make sense. Are there any questions like this on the DAT?

 

[Electrons]

A=p(1+rt)

A=1000(1+(.0225*5))=1112.5

I=a-p=
I=1112.5-1000=112.5

 

[1999TL]

I know how they got it, but I guess I assumed compound interest from taking finance. We usually assume that in this case.

After doing the problem, I was just wondering if there are gimmes like this on the real test. Or are they more like the ones on Kaplan's.