Question

How much should you invest at 2.3% simple interest in order to earn $90 interest in 18 months?

Answer 1

$2608.70

Explanation:

I = Prt

t = time in years = 18 months = 1.5 years

r = rate of interest as a decimal = 2.3% = 0.023

I = amount of interest earned

P = amount of principal (amount invested)

90 = P × 0.023 × 1.5

P = 2608.70

Answer: $2608.70