Question

An investment of $600 is made into an account that earns 6.5% annual simple interest for 15

years. Assuming no other deposits or withdrawals are made, what will be the balance in the
account?

Answer 1

we use the formula of the simple interest

`C=c(1+n\cdot(i)/(100))`

where C is the total capital, c the initial capital, the number of years and i the value fo the interest

then replacing

`C=600(1+(15)\cdot((6.5))/(100))`

and solving

`\begin{gathered} C=600(1+0.975) \\ C=600(1.975) \\ C=1185 \end{gathered}`

The final valance into the acoount will be $1185

Interest earned

`1185-600=585`

is $585