Question

Gabby invested $100 into a savings account that earned simple interest at a rate of 1.5%. She plans to keep the money in the account for 10 years. How much would she have in the account after 10 years? * $15 O $115 $116.05 $1,500

Answer 1

Simple interest formula:

A = P (1+rt)

A= money after t years

P = principal investment

r= interest rate in decimal form (divided by 100; 1.5/100= 0.015)

t= years

Replacing:

A= 100 (1+0.015(10))

A= 100 (1.15)

A=$115