SOLUTION: Suppose you deposit ​$1500 in a savings account that pays interest at an annual rate of 5​%. If no money is added or withdrawn from the​ account, answer the following questio

Algebra ->  Finance -> SOLUTION: Suppose you deposit ​$1500 in a savings account that pays interest at an annual rate of 5​%. If no money is added or withdrawn from the​ account, answer the following questio      Log On


   

Question 1139781: Suppose you deposit ​$1500 in a savings account that pays interest at an annual rate of 5​%. If no money is added or withdrawn from the​ account, answer the following questions.
a. How much will be in the account after 3 ​years?
b. How much will be in the account after 16 ​years?
c. How many years will it take for the account to contain ​$2000​?
d. How many years will it take for the account to contain ​$2500​?
Found 3 solutions by ikleyn, josmiceli, MathTherapy:
Answer by ikleyn(52803) About Me  (Show Source):
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
+I+=+P%2Ar%2At+ ( simple interest formula )
a)
+I+=+1500%2A.05%2A3+
+I+=+1500%2A.15+
+I+=+225+
+I+%2B+P+=+225+%2B+1500+
+I+%2B+P+=+1725+
$1,725
-------------
b)
+I+=+1500%2A.05%2A16+
+I+=+1200+
+I+%2B+P+=+1200+%2B+1500+
+I+%2B+P+=+2700+
$2,700
--------------
c)
+2000+-+1500+=+500+
+500+=+1500%2A.05%2At+
+500+=+75t+
+t+=+6.667+
+.667%2A12+=+8+ months
6 yrs 8 months
----------------
d)
+2500+-+1500+=+1000+
+1000+=+1500%2A.05%2At+
+1000+=+75t+
+t+=+13.333+
13 yrs 4 months

Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!

Suppose you deposit ​$1500 in a savings account that pays interest at an annual rate of 5​%. If no money is added or withdrawn from the​ account, answer the following questions.
a. How much will be in the account after 3 ​years?
b. How much will be in the account after 16 ​years?
c. How many years will it take for the account to contain ​$2000​?
d. How many years will it take for the account to contain ​$2500​?
All of @josmiceli's answers are WRONG, so IGNORE them!

Correct answers: