If you put $525 into a savings account that paid a simple interest rate of 6.5%, how much would be in your account after two years?
How much interest did you earn?

$593.25 will be available in your account after two years and they earn $68.25 of interest amount, if  you put $525 into a savings account that paid a simple interest rate of 6.5%.

Step-by-step explanation:

The given is,

                  You put $525 into a savings account

                  Simple interest rate of 6.5%,  

                  2 years

Step:1

               Formula to calculate the future amount with simple interest rate,

                           ............................(1)

              Where,

                     F - Future amount

                    P - Initial investment

                     r - Rate of interest

                     t - No.of year

             From given,

                             = 593.25

                         F = $ 593.25

Step:2

        Formula to calculate the interest amount,

                        ....................................(2)

       Where, I - Interest amount

                   F - Future amount

                   P - Initial amount

      From the F and P values equation (2) becomes,

                I = 593.25 - 525

                  = 68.25

                I = $68.25

Result:

       $593.25 will be available in your account after two years and they earn $68.25 of interest amount, if  you put $525 into a savings account that paid a simple interest rate of 6.5%.

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