Question

If you invest $500 on Lending Circle at a rate of 5% for 1.5 years, how much will you have earned?

Answer 1

`\text{ \$37.5}`

Step-by-step explanation:

Here, we want to get the amount earned which is the interest when a certain investment is made

To get the value, what we have to do is to use the following formula:

`I\text{ = }(PRT)/(100)`

Where P is the amount invested which is $500

R is the interest rate which is 5%

T is the time which is 1.5 years

We proceed to substitute the values as follows:

`I\text{ = }(500*5*1.5)/(100)\text{ = \$37.5}`