Question

Can someone please explain what formula to use when solving this problem ?

Answer 1

Explanation:

10 months=10/12=5/6 years.

Amount=Principal+ Interest

A=P+I

A=P+P×r×t

A=P(1+rt)

18500=P(1+4%×5/6)

18500=P(1+20/600)

18500=P(1+1/30)

18500=P(31/30)

P=18500×30/31≈17903.2258≈17903.23