An account earns simple interest. $1500 at 4% for 5 years. 1. Find the interest earned. 2. Find the balance of the account.
Mathematics
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Question
An account earns simple interest.
$1500 at 4% for 5 years.
1. Find the interest earned.
2. Find the balance of the account.
1 Answer

1. User Answers dexteright02
Data:
P (Principal) = $1500
I (Simple Interest) = ?
t (time) = 5 years
r (percentage rate) = 4% = 0.04
Formula:
[tex]I = P*r*t[/tex]
Solving (1) Find the interest earned.
[tex]I = P*r*t[/tex]
[tex]I = 1500*0.04*5[/tex]
[tex]\boxed{\boxed{I = 300}}\end{array}}\qquad\quad\checkmark[/tex]
Solution (2) Find the balance of the account.
The future value, (Account), of a loan is given by the equation: A = P + I
[tex]A = P + I[/tex]
[tex]A = 1500 + 300[/tex]
[tex]\boxed{\boxed{A = 1800}}\end{array}}\qquad\quad\checkmark[/tex]