Question

I=$54, P=$900, t=18 months

Answer 1

about $982.20

Explanation:

Formula = P(1+I)^T

T =18/12 because its in months not years, so 1.5 years

1+I = 1 + 54/900 or 1.03

P = 900

Plug those in and you get about 982.20

Answer 2

4%

Explanation:

For the simple interest rate,

I=P(i)t

54=900(i)(18/12)

i=54/900*(12/18)=4% annually