Question

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 savings account after 5 yr?

Answer 1

Answer: He will have 3750 in 5 years.

Step-by-step explanation: You need to do 500x1.5x5. 500 dollars is the amount in the account. 1.5 is the interest. 5 is the amount of years.

Answer 2

$537.50

Explanation:

• Initial Deposit = $500

• at a 1.5% interest

So . .

• 500.00 ×1.5 =7.5

Then . .

7.5 is for 1 year so

• 7.5 × 5 = 37.5

Then just add 37.50 to 500

• Final outcome = $537.50