Question

An account earns simple annual interest.

$1500 at 4% for 5 years

a. Find the interest earned.

$

b. Find the balance of the account.

Answer 1

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4%/100 = 0.04 per year.

Solving our equation:

A = 1500(1 + (0.04 × 5)) = 1800

A = $1,800.00

The total amount accrued, principal plus interest, from simple interest on a principal of $1,500.00 at a rate of 4% per year for 5 years is $1,800.00.