Simple interest I think would just be work out the interest earned:

1500 x 6/100 or 1500 x 0.06

This is £90 interest per year.

For simple interest you just want to times that by 5 for the number of years: 5 x 90= £450

So add that interest to your original 1500 and you get a total of £1950.

More useful (and realistic) is compound interest. All this means, is that in the first year, you earn 6% as before, and add it on to the 1500. Then in the second year, you get 6% interest on both the initial amount of £1500, and on your £90 as well.

So it goes like this:

Year 1 : 1500 x 1.06 = £1590.00

Year 2 : 1590 x 1.06 = £1685.40

Year 3 : 1685 x 1.06 = £1786.52

Year 4 : 1787 x 1.06 = £1893.72

Year 5 : 1894 x 1.06 = £2007.34

So with compound interest, you will be slightly (or sometimes a lot) better off. This is how most bank accounts are calculated.

1500 x 6/100 or 1500 x 0.06

This is £90 interest per year.

For simple interest you just want to times that by 5 for the number of years: 5 x 90= £450

So add that interest to your original 1500 and you get a total of £1950.

More useful (and realistic) is compound interest. All this means, is that in the first year, you earn 6% as before, and add it on to the 1500. Then in the second year, you get 6% interest on both the initial amount of £1500, and on your £90 as well.

So it goes like this:

Year 1 : 1500 x 1.06 = £1590.00

Year 2 : 1590 x 1.06 = £1685.40

Year 3 : 1685 x 1.06 = £1786.52

Year 4 : 1787 x 1.06 = £1893.72

Year 5 : 1894 x 1.06 = £2007.34

So with compound interest, you will be slightly (or sometimes a lot) better off. This is how most bank accounts are calculated.