Question

You deposit $750 in an account that earns 7.5% simple interest. How much will be in the account after 5 years?

Answer 1

$1,031.25 will be in the account

Answer 2

$1031.25.

Explanation:

The formula for simple interest is

I = PRT/100 so substituting:

I = 750 * 7.5 * 5 / 100

Interest I = $281.25.

Amount in account = 750 + 281.25

= $1031.25.