SOLUTION: b. If Tyler deposits $1500 of the $3200 he has earned in an account that pays 4% simple interest, how much will he have after 5 years? Show all work.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: b. If Tyler deposits $1500 of the $3200 he has earned in an account that pays 4% simple interest, how much will he have after 5 years? Show all work.       Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1103992: b. If Tyler deposits $1500 of the $3200 he has earned in an account that pays 4% simple interest, how much will he have after 5 years? Show all work.

Answer by math_helper(2461) About Me  (Show Source):
You can put this solution on YOUR website!
He deposits $1500, so that is the only part that earns interest.
For a simple interest rate of 4%, he'll earn 0.04*$1500 = $60 per year.
In 5 years, that will be 5*$60 = $300 earned in interest. This means he will have $1500 + $300 = +highlight%28matrix%281%2C2%2C+%22%24%22%2C1800%29%29+ attributable to the original $1500 investment.