Question

josh desposited $1,500 into an account that earns 6% simple interest every year. how much money would be in his account after 20 years ?

Answer 1

Step-by-step explanation: example:

Problem: You deposit some money into a bank account paying 2% simple interest per 6 months. You received $15 in interest after 9 months. How much the deposit (principal) was?

Result: The principal was $500.

STEP 1: Convert interest rate of 2% per 6 months into rate per year.

STEP 2: Convert 9 months

STEP 3: Find principal by using the formula , where I is interest, P is total principal, i is rate of interest per year, and t is total time in years.

In this example I = $15, i = 4% and t = 0.75 years, so