Mathematics

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

  • 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]



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