$1500 at 4% for 5 years

Answer 1

if it is simple interest ----> then PRT/100 is the interest where P is the principal amount R is the rate of interest and T is time period so interest after 5 years is 1500*4*5/100 = 300

So after 5 years 1500 will be 1800$

If its compound interest then

In order to calculate 1500 at 4% for 5 years you need to add 4% of the total every year.

Year 0 —> 1500

Year 1 —> 1500 x 0.04 = 60. 1500 + 60 = 1560

Year 2 —> 1560 x 0.04 = 62.4. 1560 + 62.4 = 1622.40

Year 3 —> 1622.40 x 0.04 = 64.90. 1622.40 + 64.90 = 1687.30

Year 4 —> 1687.30 x 0.04 = 67.50. 1687.30 + 67.50 = 1754.80

Year 5 —> 1754.80 x 0.04 = 70.19. 1754.80 + 70.19 = $1,824.99

or

1500(1.04)⁵ =1824.98

Answer 2

if it is simple interest ----> 1500(1.20) = 1800

if it is compound interest ----> 1500(1.04)⁵ =1824.98

Answer 3

In order to calculate 1500 at 4% for 5 years you need to add 4% of the total every year.

Year 0 —> 1500

Year 1 —> 1500 x 0.04 = 60. 1500 + 60 = 1560

Year 2 —> 1560 x 0.04 = 62.4. 1560 + 62.4 = 1622.40

Year 3 —> 1622.40 x 0.04 = 64.90. 1622.40 + 64.90 = 1687.30

Year 4 —> 1687.30 x 0.04 = 67.50. 1687.30 + 67.50 = 1754.80

Year 5 —> 1754.80 x 0.04 = 70.19. 1754.80 + 70.19 = $1,824.99