Question

Tory deposited 3100 and to a savings account that pays simple annual interest rate of 3.38% how much interest will she earn after 18 months?

Answer 1

$157.17

Explanation:

Interest is the amount of return that someone receive on the amount invested in a bank or in a business. The annual interest rate is defined on the invested amount. The amount invested is called the principal and.

By applying the interest rate on the principal amount, we can calculate the annual interest earning.

Principal = $3,100

Rate of simple interest = 3.38% per year

Now, define the total time period.

Time period = 18 months = 18 / 12 = 1.5 years

Now calculate the Total interest earning.

Interest Earned = $3,100 x 3.38% x 1.5 = $157.17