Question

A new bank customer with ​$4,500 wants to open a money market account. The bank is offering a simple interest rate of 1.5​%. (A). How much interest will the customer earn in 10 ​years? (B). What will the account balance be after 10 ​years?

Answer 1

I = PRT /100

= 4500*1.5*10/100 = $675
Interest = $675 after 10 years

(b) Account balance will be $5175