3. margaret has decided to invest $2,000 in a savings account for 18 months at a simple interest rate of 5%…

3. margaret has decided to invest $2,000 in a savings account for 18 months at a simple interest rate of 5%. how much money will she have earned at the end of 18 months? (8.12d)

3. margaret has decided to invest $2,000 in a savings account for 18 months at a simple interest rate of 5%. how much money will she have earned at the end of 18 months? (8.12d)

Answer

Explanation:

Step1: Convert time to years

18 months = $\frac{18}{12}= 1.5$ years

Step2: Use simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the interest rate (in decimal form), and $t$ is the time in years. Given $P=$2000$, $r = 0.05$ (since $5%=0.05$), and $t = 1.5$ years. Then $I=2000\times0.05\times1.5$.

Step3: Calculate the interest

$I = 2000\times0.05\times1.5=150$

Answer:

150