Question

E. Lindsey sold stationery to her family and her mother's friends. She deposited the $125

she earned in a savings account. The account earns 5.18% interest annually. If she does
not deposit or withdraw any money from for 18 months, how much will she have in her
account?

Answer 1

$134.71

Explanation:

This is a simple interest question

A = P(1 + rt)

A = Amount after t months or years

P = Principal or amount saved

r = interest rate = 5.18% = 0.0518

t = time.in years = 18 months

= 1 year and 6 month

= 1.5 year

A = $125( 1 + 0.0518 × 1.5)

A = $125 ( 1 + 0.0777)

A = $125(1.0777)

A = $134.71