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iogann1982 [59]
3 years ago
11

An account earns simple interest. $1800 at 6.5% for 30 months

Mathematics
1 answer:
Vikentia [17]3 years ago
5 0

A = P(1 + rt)

Where:

<span>A = Total Accrued Amount (principal + interest)
P = Principal AmountI = Interest Amount
r = Rate of Interest per year in decimal;
r = R/100
R = Rate of Interest per year as a percent;
 R = r * 100
<span>t = Time Period involved in months or years

</span></span>Calculation:

First, converting R percent to r a decimal
r = R/100 = 6.5%/100 = 0.065 per year,
putting time into years for simplicity,
30 months ÷ 12 months/year = 2.5 years,
then, solving our equation

<span>A = 1800(1 + (0.065 × 2.5)) = 2092.5 </span>
A = $ 2,092.50

The total amount accrued, principal plus interest,
from simple interest on a principal of $ 1,800.00
at a rate of 6.5% per year
<span>for 2.5 years (30 months) is $ 2,092.50.</span>
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3) real world example

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