Question

yaretzyΣ 21. $1,500 is deposited into a savings account that earns 2.5% simple interest for 4years. How much interest will be earned in the 4 years? *Your answer

Answer 1

We have the next formula to the simple interest

`I=P* r* t`

where

I= interest earn after t years

P is the initial deposit

r is the rate

t is the time

P=1500

r=2.5%

t= 4 years

then we substitute the values in the formula

`I=1500(.025)(4)`
`I=150`

He will earn $150 after 4 years, his final capital will be $1650