Question

How much will Jason earn, if he invests $8,000 at 7.5% interest rate for 18 months? How much will be in the account at the end of the 18 months?

Answer 1

$8,900

Explanation:

Answer 2

$8,900

Explanation:

You don't say anything about compounding. If this problem involves only simple interest, then the interest will be i = p*r*t and the account balance will be i + p.

Here i = $8,000*0.075*1.5 (representing 18 months)

i + $900

At the end of 18 months there will be $8,000 + $900, or $8,900, in the account.