5. pedro deposits $1,300 into a bank account with an annual simple interest rate of 1.5%. how much interest…

5. pedro deposits $1,300 into a bank account with an annual simple interest rate of 1.5%. how much interest does pedro earn in 2 years?

5. pedro deposits $1,300 into a bank account with an annual simple interest rate of 1.5%. how much interest does pedro earn in 2 years?

Answer

Explanation:

Step1: Identify the simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years.

Step2: Convert the interest rate to decimal form

The annual interest rate $r = 1.5%=0.015$. The principal amount $P=$1300$ and the time $t = 2$ years.

Step3: Substitute the values into the formula

$I=Prt=1300\times0.015\times2$. First, calculate $1300\times0.015 = 19.5$. Then, $19.5\times2=39$.

Answer:

$39$