Question

An account earns simple annual interest.

$1800 at 6.5% for 30 months
a. Find the interest earned.
b. Find the balance of the account.

Answer 1

THIS IS CORRECT I JUST ANSWERED

Explanation:

Interest earned: $292.50

Balance: $2092.50

Answer 2

$2,092.5 with $292.5 in interest.

Explanation:

30 divided by 12 (to find the years/leftover months) [do this as an improper fraction to be a little simpler] 30/12 = 2 6/12 or 2 years 6 months

6.5% of 1800 is 117

117y = 117(2.5) = 292.5 [this is the interest]

1800 + 292.5 = 2,092.5