Question #3a28b

1 Answer
Aug 15, 2016

Answer:

Simple interest = #18.75#
Compound interest = #18.87#

Explanation:

The question does not indicate whether it is compound or simple interest.

Let's look at both:
Simple interest

#SI = (PRT)/100#

#SI = (500xx2.5 xx18)/(100xx12)" 18 months" =18/12 years#

#SI = 18.75#

It would be nice to have a unit of currency included as well.

Compound interest

#"Full Amount" = P(1+R/100)^n#

# A = 500(1.025)^(3/2)" 18 months"= 1 1/2 yrs = 3/2#

#A = 518.57# This is the full amount.

Interest = #518.87 -500 = 18.87#