## A new bank costumer with 2500 dollars wants to open a money market account. The bank is offering a simple interest rate of 1.5 percent. How

Question

A new bank costumer with 2500 dollars wants to open a money market account. The bank is offering a simple interest rate of 1.5 percent. How much interest will the account balance be after 30 years? What will the account balance be after 30 years?

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4 weeks 2021-09-15T16:08:25+00:00 2 Answers 0

1125 for the interest amount , 3625 for the total account balance

Step-by-step explanation:

## calculating the amount of interest after 30 years and the balance after 30 years

the formula of the simple interest : where:

P is the principle

R is the rate of interest

T is the number of years

### Interest amount after 30 years

input the values in the formula to get the amount of interest

= (2500 *1.5*30)/100

=$1125 amount of interest after 30 years is$1125

### Account balance after 30 years

add the amount of interest after 30 years to the original principle amount

= 1125 + 2500

=$3625 account balance after 30 years is$3625

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the amount deposited.

P represents the principal or amount deposited.

R represents interest rate

T represents the duration in years.

From the information given,

P = 2500

R = 1.5%

T = 30 years

I = (2500 × 1.5 × 30)/100 = $1125 the account balance be after 30 years is 1125 + 2500 =$3625