Question

A new bank costumer with 2500 dollars wants to open a money market account. The bank is offering a simple interest rate of 1.5 percent. How much interest will the account balance be after 30 years? What will the account balance be after 30 years?

Answer 1

1125 for the interest amount , 3625 for the total account balance

Explanation:

calculating the amount of interest after 30 years and the balance after 30 years

the formula of the simple interest :

`(PRT)/(100)`

where:

P is the principle

R is the rate of interest

T is the number of years

Interest amount after 30 years

input the values in the formula to get the amount of interest

= (2500 *1.5*30)/100

=$1125

amount of interest after 30 years is $1125

Account balance after 30 years

add the amount of interest after 30 years to the original principle amount

= 1125 + 2500

=$3625

account balance after 30 years is $3625

Answer 2

Explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited.

R represents interest rate

T represents the duration in years.

From the information given,

P = 2500

R = 1.5%

T = 30 years

I = (2500 × 1.5 × 30)/100 = $1125

the account balance be after 30 years is

1125 + 2500 = $3625