Question

At the end of a 15-year term, what is the balance of a $3,000 investment at a simple interest rate of 1.5 percent?

Answer 1

Find how much interest is earned for one year: $3000 x .015 = $45
Use that answer to find how much interest is earned for 15 years: $45 x 15 years = $675
Add original investment to interest for balance: $3000 + $675 = $3675