Question

If Eric invests $500 today in an account that earns 8.00% per year in simple interest, how much will he have in 15 years?

A. $740
B. $680
C. $780
D. $900
E. $1,000

Answer 1

To calculate the future amount with simple interest, use the formula: Total Future Amount = Principal + (Principal * Rate * Time). In this case, Eric will have $740 in 15 years.

Step-by-step explanation:

To calculate the future amount with simple interest, we can use the formula:

Total Future Amount = Principal + (Principal * Rate * Time)

In this case, the principal is $500, the rate is 8.00%, and the time is 15 years. Plugging these values into the formula, we get:

Total Future Amount = $500 + ($500 * 0.08 * 15) = $740

Therefore, Eric will have $740 in 15 years.