An account earns simple interest. $1500 at 4% for 5 years Find the interest earned.

Answer 1

The underlying formula that you want to use here for simple interest is

Interest = Principal x Rate x Time, which on this one becomes

Interest = 1500 x 0.04 x 5

Interest = 300

meaning that the simple interest earned on a $1500 investment over 5 years at a simple interest rate of 4% is $300