Question

What is the total value of an account with a deposit of $650 that earns simple interest after 15 yearswith an interest rate of 5%? (Remember to use the formula 1 = P x R x T) Rate has to be a decimal.

Answer 1

we use the formula of simple interest

`I=P* R* T`

Where P is the intial capital, R the interest rate(dividing by 100) and T the time on years

then replacing

`\begin{gathered} I=650((5)/(100))*15 \\ \\ I=650(0.05)*15 \\ \\ I=487.50 \end{gathered}`

the initial amount earns $487.50 then the total of the account is

`650+487.50=1137.50`

$1137.50