Question

What is the total value of an account with a deposit of $650 that earns simple interest after 15 yearswith an interest rate of 5%? (Remember to use the formula 1 = P x R x T) Rate has to be a decimal.

Answer 1

we use the formula of simple interest

$I=P\times R\times T$

Where P is the intial capital, R the interest rate(dividing by 100) and T the time on years

then replacing

$\begin{gathered} I=650(\frac{5}{100})\times15 \\ \\ I=650(0.05)\times15 \\ \\ I=487.50 \end{gathered}$

the initial amount earns $487.50 then the total of the account is

$650+487.50=1137.50$

$1137.50