Simple interest calculates interest only on the initial amount. The interest earned on the given amount after 15 years with the given conditions is given by: Option C: $3,637.50
How to calculate simple interest's amount?
If the initial amount (also called as principal amount) is P, and the interest rate is R% annually, and it is left for T years for that simple interest, then the interest amount earned is given by:
[tex]I = \dfrac{P \times R \times T}{100}[/tex]
For the given case, we are given that:
P = $5,000, R = 4.85%, and T = 15 years
Thus, using the above formula for simple interest, we get:
[tex]I = \dfrac{P \times R \times T}{100} = \dfrac{5000 \times 4.85 \times 15}{100} = 3637.50 \: \rm (in \: dollars)[/tex]
Thus, the interest earned on the given amount after 15 years with the given conditions is given by: Option C: $3,637.50
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