Question

2.

What is the amount of interest that Mee earns on the following deposit is
5720, interest rate is 3.2% each year, for 18 months Show your work

Answer 1

$274.56

Explanation:

First, converting R percent to r a decimal

r = R/100 = 3.2%/100 = 0.032 per year,

putting time into years for simplicity,

18 months ÷ 12 months/year = 1.5 years,

then, solving our equation

I = 5720 × 0.032 × 1.5 = 274.56

I = $ 274.56

The simple interest accumulated

on a principal of $ 5,720.00

at a rate of 3.2% per year

for 1.5 years (18 months) is $ 274.56.