Question

Jessica has an account with a credit union. Her account earns 2.5% simple interest yearly. Exactly a year and a half ago, she opened her account with $900. How much interest has she earned so far?

And please show how to do it or show your work

Answer 1

if i got my calculations right $22.50 is 2.5% of $900 so $22.50 divided by 2 is $11.25, then i multiplied $11.25 x 3 to get a end result of $33.75. so then $900 plus $33.75 is $933.75 after a year and a half.

Answer 2

The interest earned by Jessica after a year and a half of investment is $ 33.75.

Explanation:

First, we must establish that simple interest is one in which interests are not added to capital. Therefore, interest in this case will always be calculated on the initial basis of $ 900.

That said, if Jessica invested $ 900 in her account, and said account grants a simple annual interest of % 2.5 per year, that account grants an interest of $ 22.5 per year (since 900 x 2.5 / 100 = 22.5). Therefore, to know the interest obtained in a year and a half, we must perform the following calculation:

22.5 (annual interest) + 22.5 / 2 (half-year interest) = X

22.5 + (22.5 / 2) = X = 33.75

Therefore, the interest obtained by Jessica after a year and a half of investment is $ 33.75.