Question

Arisia puts $500.00 into a savings account with an annual simple interest rate of 4.5%. If the interest stayed the same, how much interest would arisia's account earn after 15years?

Answer 1

$112.5

Explanation:

Step one:

given data

principal= $500

rate= 4.5= 0.045

time t= 5years

Step two:

the expression for the simple interest is given as

A=P(1+rt)

the interest SI= final amount (A)- Principal(P)

Substituting we have

A=500(1+0.045*5)

A=500(1+0.225)

A=500(1.225)

A=612.5

the interest is 612.5-500

=$112.5