Question

$1500 is deposited in a savings account for 15 months and earns interest at a rate of 4.5%. How much will be in the account at the end of 15 months

Answer 1

assuming is simple interest.

let's bear in mind that 15 months is more than a year, is actually 15/12 years.

`\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$1500\\ r=rate\to 4.5\%\to (4.5)/(100)\dotfill &0.045\\ t=years\to (15)/(12)\dotfill &(5)/(4) \end{cases} \\\\\\ A=1500\left(1+0.045\cdot (5)/(4) \right)\implies A=1500(1.05625)\implies A=1584.375`

Answer 2

1500× 4.5% = 67.50 + 1500= 1,567.50