A new bank customer with ​$5 comma 000 wants to open a money market account. The bank is offering a simple interest rate of 1.5​%.

Question

. After 10 ​years, the account balance will be

Answer 1

calculated as follows:

Balance = Principal x (1 + (interest rate x time))
Balance = $5,000 x (1 + (0.015 x 10))
Balance = $5,000 x (1 + 0.15)
Balance = $5,000 x 1.15
Balance = $5,750

Therefore, after 10 years, the account balance will be $5,750.