Question

If you deposit $5000 in an account paying 2.15% simple interest, what will your balance be in 5 years?

Answer 1

$5,537.5

Explanation:

So the simple interest formula is A=P(1+rt). T meaning the time (in this case 5 years), P meaning the original amount you put in ($5000), and R meaning the interest rate (2.15%). So if we put those all in 5000(1+2.15x5) it would be 58,750