Question

amber deposits $870 in an account that has a simple interest rate of 8% per year. After 5 years, how much interest will Amber have learned and what will the total balance be in the account

Answer 1

For simple interest, the formula is I = PRT, where I = interest, P = principal borrowed or deposited, R = rate as a decimal, and T = time in years.

Your information:
I = (870)(0.08)(5)
I = 348

Add the interest to the principal for your total balance

348 + 870 = $1218 will be the total balance in the account.