00:01
In this problem, it says that $15 ,000 is invested at an interest rate of 4%.
00:05
So we want to find the number or the amount of interest that is going to be earned after the following years, after five years, and after 10 years.
00:14
So in this case, i'm going to assume we're talking about simple interest.
00:17
So our simple interest formula is i equals prt, where i is the amount of interest, p is what's invested, r is the rate, and t is the time.
00:26
So if we're looking at part a, we're told we want to find the amount of interest after 10 years.
00:32
So t would equal to 10.
00:34
So i would equal to p, that's our principle, 15 ,000 times the rate.
00:40
But remember, our rate needs to be a decimal.
00:41
So all we do is move to decimal point, two places to the left.
00:45
So that would be 0 .04 times t, which is 10.
00:49
So now all we're going to do is use a calculator to find the amount of interest...