# A deposit of $1500 in an account pays 7.25% interest a year. What is the account balance after 8 years? (2 decimals) floymdiT 2020-11-27 Answered 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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Step 1 Given data: Principal $P=\mathrm{}1500$

Rate of interest, $r=7.25\mathrm{%}$ per year Time, $t=8$ years

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

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

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