Question

If a student deposits $1,500 in the bank and earns an annual interest rate of 8%,

how much will he have after 15 years? (Hint: y = ab)

Answer 1

Answer: $4758.25

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Work Shown:

• a = 1500 = deposit amount
• b = 1.08 = represents an increase of 8% since 100% + 8% = 1+0.08 = 1.08

The equation y = a*b^x updates to y = 1500*(1.08)^x

Plug x = 15 into the equation to find out how much money you have after 15 years.

y = 1500*(1.08)^x

y = 1500*(1.08)^15

y = 1500*(3.17216911419828)

y = 4758.25367129741

y = 4758.25

Don't forget to round to the nearest cent.

Answer 2

1800

Explanation: 1= P x r x t


P is the principal amount, $1500.00.
r is the interest rate, 8% per year, or in decimal form, 8/100=0.08.
t is the time involved, 15....year(s) time periods.
So, t is 15....year time periods.


find the simple interest, we multiply 1500 × 0.08 × 15 to get that