Question

Samuel's Nana deposited $1600 into a savings account as a college fundon his birthday. how much will samuel have in this account after 17 years at a yearly simple interest rate of 1.5%?

Answer 1

Samuel will have $2,008 in his account after the 17 years of saving

Here, we want to calculate the amount that will be in the account after the saving period

Mathematically, this is;

`\text{Amount = Principal + Simple Interest}`

We can calculate the simple interest as follows;

`\begin{gathered} \text{simple interest = }\frac{P\text{ }*\text{ R }*\text{ T}}{100} \\ \\ \text{where P is the amount deposited which is 1600} \\ R\text{ is the yearly interest rate which is 1.5\%} \\ T\text{ is the number of years of savings which is 17 years} \\ \\ \text{Substituting these values in the equation, we have;} \\ \\ \text{Simple interest = }\frac{1600\text{ }*\text{ 1.5 }*\text{ 17}}{100}\text{ = 408} \end{gathered}`

The amount in the savings account after the period will be; $1600 + $408 = $2,008