Question

if you deposit $800 in a savings account that are in simple interest at a rate of 1.5% per year how much interest will you have earned after five years?

Answer 1

To calculate the simple interest earned, you can use the formula:

\[
\text{Interest} = P \times r \times t
\]

Where:
- \(P\) is the principal amount (the initial deposit)
- \(r\) is the annual interest rate (in decimal form)
- \(t\) is the time in years

In this case:
- \(P = 800\) dollars
- \(r = 1.5\% = 0.015\)
- \(t = 5\) years

Now plug in the values:

\[
\text{Interest} = 800 \times 0.015 \times 5
\]

Calculating this step-by-step:

\[
\text{Interest} = 800 \times 0.015 = 12
\]

\[
\text{Interest} = 12 \times 5 = 60
\]

So, the interest earned after five years will be **$60**.