55.2k views
1 vote
An account earns simple interest.

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

b. Find the balance of the account.
$______

User Selami
by
8.5k points

1 Answer

6 votes

The formula for simple interest is given by

I=PRT

We are given P=$1500

R=4% or 0.04

T=5 years

plugging them in the equation I=PRT , we get

I =1500*0.04*5 = 300

so interest is $300

Amount =P+I

Amount =1500+300 =1800

Amount $1800

User Tomasulo
by
8.9k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories