Question

An account earns simple interest.

$1500 at 4% for 5 years
a. Find the interest earned.
$
b. Find the balance of the account.

Answer 1

a) $300 in interest

b) $1800 account total

Explanation:

Interest = Principal x Rate x Time

I = 1500(.04)(5)

I = 300

A = P + I

1800 = 1500 + 300