Answer:
$157.17
Step-by-step explanation:
Interest is the amount of return that someone receive on the amount invested in a bank or in a business. The annual interest rate is defined on the invested amount. The amount invested is called the principal and.
By applying the interest rate on the principal amount, we can calculate the annual interest earning.
Principal = $3,100
Rate of simple interest = 3.38% per year
Now, define the total time period.
Time period = 18 months = 18 / 12 = 1.5 years
Now calculate the Total interest earning.
Interest Earned = $3,100 x 3.38% x 1.5 = $157.17
