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yaretzyΣ 21. $1,500 is deposited into a savings account that earns 2.5% simple interest for 4years. How much interest will be earned in the 4 years? *Your answer



Answer :

We have the next formula to the simple interest

[tex]I=P\times r\times t[/tex]

where

I= interest earn after t years

P is the initial deposit

r is the rate

t is the time

P=1500

r=2.5%

t= 4 years

then we substitute the values in the formula

[tex]I=1500(.025)(4)[/tex][tex]I=150[/tex]

He will earn $150 after 4 years, his final capital will be $1650

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