Question

An account earns simple interest.

$1500 at 4% for 5 years.
1. Find the interest earned.
2. Find the balance of the account.

Answer 1

Data:
P (Principal) = $1500
I (Simple Interest) = ?
t (time) = 5 years
r (percentage rate) = 4% = 0.04

Formula:

`I = P*r*t`

Solving (1) Find the interest earned.

`I = P*r*t`

`I = 1500*0.04*5`

`\boxed{\boxed{I = 300}}\end{array}}\qquad\quad\checkmark`

Solution (2) Find the balance of the account.
The future value, (Account), of a loan is given by the equation: A = P + I

`A = P + I`

`A = 1500 + 300`

`\boxed{\boxed{A = 1800}}\end{array}}\qquad\quad\checkmark`