Question

An account earns simple interest.

Answer 1

Data:
P (Principal) = $1500
I (Simple Interest) = ?
t (time) = 5 years 
r (percentage rate) = 4% = 0.04

Formula:
$I = P*r*t$

Solving (1) Find the interest earned.
$I = P*r*t$
$I = 1500*0.04*5$
$\boxed{\boxed{I = 300}}\end{array}}\qquad\quad\checkmark$

Solution (2) Find the balance of the account.
The future value, (Account), of a loan is given by the equation: A = P + I
$A = P + I$
$A = 1500 + 300$
$\boxed{\boxed{A = 1800}}\end{array}}\qquad\quad\checkmark$