Question

sheila deposited $5000 into college savings account paying 6.5 interest. what is the account balance after 15 years

Answer 1

now, we're assuming is 6.5 APR on a simple interest rate, so

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$5000\\ r=rate\to 6.5\%\to (6.5)/(100)\dotfill &0.065\\ t=years\dotfill &15 \end{cases} \\\\\\ A = 5000[1+(0.065)(15)] \implies A=5000(1.975)\implies A = 9875`