Question

Simon put $15000 in an account with a simple interest rate of 4.5% how much will be earned after 8 years

Answer 1

Use the following formula for simple interest:

I = P*r*t

where,

P: principal =$15000

r: interest rate = 0.045 (4.5%)

t: time = 8

Replace the previous values into the expression for I and simplify:

I = ($15000)(0.045)(8)

I = $5400

Hence, after 8 years Simon will earn $5400