Question

Amy opened a savings account with $1,550 she received for graduation the account pays 4.3% simple interest what is the balance after 18 months

Answer 1

since a year has 12 months, thus 18 months is really 18/12 of a year, so

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$1550\\ r=rate\to 4.3\%\to (4.3)/(100)\dotfill &0.043\\ t=years\to (18)/(12)\dotfill &(3)/(2) \end{cases} \\\\\\ A = 1550[1+(0.043)((3)/(2))] \implies A = 1550(1.0645) \implies A =\approx 1649.98`