Question

Question 2

Brent invested $6,500 into an account
paying a simple interest rate of 4.2% per
year. Assuming no withdrawals were
made, which of the following is the total
amount in the account after 18 months?

Answer 1

$6909.50

Explanation:

First, converting R percent to r a decimal

r = R/100 = 4.2%/100 = 0.042 per year,

then, solving our equation

I = 6500 × 0.042 × 1.5 = 409.5

I = $ 409.50

The simple interest accumulated

on a principal of $ 6,500.00

at a rate of 4.2% per year

for 1.5 years is $ 409.50.