Question

Maribel deposited $1,500 in a new account at her bank. -The bank pays 4.5% annual simple interest on this account. -Maribel did not make any additional deposits or withdrawals. What is the balance of the account at the end of five years?

Answer 1

1500+337.50 = $1,837.5

Explanation:

You want to calculate the interest on $1500 at 4.5% interest per year after 5 year(s).

The formula we'll use for this is the simple interest formula, or:

I = P x r x t

Where:

P is the principal amount, $1500.00.

r is the interest rate, 4.5% per year, or in decimal form, 4.5/100=0.045.

t is the time involved, 5....year(s) time periods.

So, t is 5....year time periods.

To find the simple interest, we multiply 1500 × 0.045 × 5 to get that:

The interest is: $337.50