Question

Caiden earned $475 from mowing lawns last summer. He deposited this money in an account that pays an interest rate of 3.8%. What will be the amount of interest earned after 15 years

Answer 1

The balance after 15 year is $831.25 .

Explanation:

Formula

Where P is the principle and r is the rate of interest in the decimal form and t is the time.

As given

Caiden earned $475 from mowing lawns last summer.

He deposited this money in an account that pays an interest rate of 3.8% compounded annually.

Here

P = $475

3.8% is written in the decimal form.

= 0.038

r = 0.038

t = 15 years

Put in the formula

Amount = $831.25

Therefore the balance after 15 year is $831.25 .