Question

A deposit of $10,000 is made into an account that earns 6% interest. Use

your simple interest formula, I=Prt, to calculate the balance after 15 years

Answer 1

$19,000

Explanation:

The balance is the sum of the principal amount and the interest it earns:

A = P + I

A = P + Prt

A = P(1 +rt)

A = $10,000(1 +.06×15)

A = $19,000 . . . balance after 15 years