Question

Samuel Nana deposited $1,600 into a savings account as a college fund on his birthday. how much will Samuel have in this account after 17 years at a yearly simple interest rate of 1.5% ?

Answer 1

Let's calculate the interest he will accumulate in 1 year:

1.5% of 1600

Note: 1.5% = 1.5/100 = 0.015

So,

0.015 * 1600 = $24 (in 1 yr)

Thus, in 17 years, he will get:

17 * 24 = $408 [total simple interest in 17 years]

Now,

So, total amount he will accumulate after 17 years is the initial amount PLUS interest. That would be:

1600 + 408 =

$2008