Question

Jessica has an account with a credit union her account earns 2.7% simple interest yearly exactly a year and a half ago she opened her account with $900 how much interest has she earn a far

Answer 1

Account balance after interest is added : A = P(1 + rt)

Interest : I = A - P

R = 2.7% per year

P = $900.00

t = 1.5 years

First, converting R percent to r a decimal

r = R/100 = 2.7%/100 = 0.027 per year.

Solving our equation:

A = 900(1 + (0.027 × 1.5)) = 936.45

A = $936.45

Interest : I = A - P = $36.45

**Note: There are numerous online calculators that will walk you through this with steps like I listed above ***

Explanation: