Question

1) Arnold has $200 in his bank account. His bank

account earns interest at a rate of 2% each year.
After 15 years, how much money will Arnold have
in his bank account (assuming no withdrawals or
deposits)?

Answer 1

P is the principal amount, $200.00.

r is the interest rate, 2% per year, or in decimal form, 2/100=0.02.

t is the time involved, 15....year(s) time periods.

So, t is 15....year time periods.

To find the simple interest, we multiply 200 × 0.02 × 15 to get that:

The interest is: $60.00