Question

Richard deposited $5,500 for 18 months on 2.40% interest rate in his saving account. How much simple interest will he earn?

Answer 1

$198

Step-by-step explanation:

Richard deposited $5,500 for 18 months on a 2.40% interest rate in his savings account. How much simple interest will he earn?

Simple interest is calculated using the formula.

I = P x R x T

I= interest,

P= principal amount,

R = interest rate,

T = time in years

Richard will earn

I =$5500 x 2.40% x 1.5 years

I = $5500 x 0.024 x 1.5

I= $132 x 1.5

I= $198

Interest = $198