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.