Question

Joey invest $900 at 4% simple interest for 2 years but he wants to know how much money he will have after only 18 months. Determine how much money he will have after 18 months.

Answer 1

well, bearing in mind that, a year has 12 months, so 18 months is really just 18/12 of a year, or 3/2 a year, then


`\bf \qquad \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \$900\\ r=rate\to 4\%\to (4)/(100)\to &0.04\\ t=years\to (18)/(12)\to &(3)/(2) \end{cases} \\\\\\ A=900\left( 1+0.04\cdot (3)/(2) \right)`