Question

Urgent!

Patricio deposits $500 in a savings account that pays 1.5% simple interest. He does not withdraw any money
from the account, and he makes no other deposits.

How much money does Patricio have in the account after 5 years?
The formula for simple interest is I = Prt

Answer 1

Answer: 37.50

Explanation:

I = $ 37.50

Equation:

I = Prt

Calculation:

First, converting R percent to r a decimal

r = R/100 = 1.5%/100 = 0.015 per year,

then, solving our equation

I = 500 × 0.015 × 5 = 37.5

I = $ 37.50

The simple interest accumulated

on a principal of $ 500.00

at a rate of 1.5% per year

for 5 years is $ 37.50.