Question

An account earns simple annual interest. $1500 at 4% for 5 years

Answer 1

Answer:

a) Interest earned = $300

b) balance = $1800

Step-by-step explanation:

a) I = Prt

P = $1500

r = 0.04

t = 5yrs

Substitute

I = ($1500)(0.04)(5)

Multiply

I = $300

b) balance = previous + interest earned

balance = $1500 + $300 = $1800

Answer 2

Step-by-step explanation:

To answer this will we use our equation of I = prt

in this case the I in the equation, or meaning the interest will remain as a variable

our p in the equation or principal, will be 1500

next our r, or rate in the following equation will be 4%. since it is a percent, we will have to convert it into a decimal, 0.04

finally our t, or time. in this case it will be 5 years

here is our equation

I = 1,500 x 0.04 x 5

then we solve, given us 300

300 = 1,500 x 0.04 × 5

I (Interest) = 300

Total cost = 1,800