Question

Mrs Martin deposits $2,350 in a money market account. Her account earns an interest rate 18% if she does not deposit or withdraw any money from the account how much will mrs Martin have in the account at the end of six months

Answer 1

Answer:  $2,561.50
(I = A - P = $211.50)

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 18%/100 = 0.18 per year.

Solving our equation:
A = 2350(1 + (0.18 × 0.5)) = 2561.5 
A = $2,561.50

The total amount accrued, principal plus interest, from simple interest on a principal of $2,350.00 at a rate of 18% per year for 0.5 years is $2,561.50.