Question

Jonathon deposited $2,750 into a savings account with a simple interest it 4%. How much interest will he earn after 18 months?

Answer 1

Jonathon will earn $165 in interest after 18 months.

Step-by-step explanation

The simple interest, SI, earned on an amount invested, saved or loaned, P, invested at a rate of R% for a period of time, T, is given as

SI = (PRT/100)

For this question,

P = $2750

R = 4%

T = 18 months = 1.5 years

SI = (2750 × 4 × 1.5)/100

SI = $165

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