Question

you invest $80 at a simple annual interest rate of 2.4% how much simple interest would you earn in 1.5 years. what would the monthly interest rate need to be to earn the same amount of intersest during the same amount of time?​

Answer 1

Explanation:

The formula for simple interest is Prt = I, where P is the initial investment, r is the interest rate in decimal form, t is the time in years, and I is the interest earned from the multiplication of the 3 previous values.

Our p value is 80; our r in decimal form is .024, and our t is 1.5. Multiplying those together,

80(.024)(1.5) = $2.88

The monthly interest rate to earn the same amount of interest during the same amount of time, assuming you are investing $80, would not change. It would be 2.4%.