Question

Calculate the simple interest you would receive in five years on a savings account that earns 7.5% annual interest. your beginning balance is $1236.59.

Answer 1

We know,
simple interest = (capital×time in years×interest rate)/100
therefore,
simple interest = (1236.59×5×7.5)/100
= 46372.125/100
=463.72
Thus, simple interest = $463.72

Answer 2

$4,637.21 in 5 years of simple interest.