Question

If you deposit $100 in a savings account that earns simple interest at a rate of 1.5% per year how much interest will you have earned after five years

Answer 1

Equation: L=P*R*T

P=100
R=1.5%=0.015
T=5

Multiply and you get 7.5 as the interest.

Answer 2

$100 × 1.5 = $150

$150 × 5 = $750