Question

Isaac deposits $1,500 in a savings account that earns 5% per year. How much interest will the money have earned at the end of 4 years?

Answer 1

Use the Simple Interest Formula, I = prt where I is the amount of interest, p is the principal (amount invested), r is the interest rate as a decimal, and t is the time in years. I = 1500(.05)(4) I = 300 Isaac's investment earns $300 interest.