A deposit of $1500 in an account pays 7.25% interest a year. What is the account balance after 8 years? (2 decimals)

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Answer 1

Step 1 Given data: Principal $P = $ 1500$

Rate of interest, $r = 7.25 %$ per year Time, $t = 8$ years

The simple interest is given by the formula as: $S . I . = \frac{P \times r \times t}{100}$
$= \frac{1500 \times 7.25 \times 8}{100}$
$= 120 \times 7.25$
$= $ 870$

Step 2 Hence, the amount (i.e account balance) after 8 years is equal to, $= principle + S . I$
$= $ 1500 + $ 870$
$= $ 2370$

Answer: The amount after 8 years will be $2370.

A deposit of $1500 in an account pays 7.25% interest a year. What is the account balance after 8 years? (2 decimals)

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