Question

An account earns simple interest.

$1500 at 4% for 5 years
a. Find the interest earned.

(I thought it was $1832.10, but it says it is wrong)

b. Find the balance of the account.

(says $2332.10 is wrong)



HELP ME!!!!!

Answer 1

the interest earned is what was made, not what was made + the original...idk for sure if this is correct, but, the interest earned is 243.97, and the new balance is 1743.97

Answer 2

Simple interest = P * R * T / 100
I = 1500 * 4 * 5 /100
I = 30000 /100
I = 300

In short, Interest amount would be $300

2) Balance = Previous balance + Interest amount
b = 1500 + 300 = 1800


Hope this helps!