Question

you deposit $1500 in an account that pays 5% interest yearly. How much money do you have after 6 years?

Answer 1

Answer: $1,950 explanation: 1500 x 0.05 =75 75 x 6 years = 450. 1500+450=1950

Answer 2

assuming simple interest.

$\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \ 1500\\ r=rate\to 5\%\to \frac{5}{100}\dotfill &0.05\\ t=years\dotfill &6 \end{cases} \\\\\\ A=1500[1+(0.05)(6)]\implies A=1500(1.3)\implies A=1950$