Question

mia has $950 in a savings account that earns 2% annual simple interest. How much money will be in her account if she does not make any deposits or withdrawls in 18 months?

Answer 1

keeping in mind that there are 12 months in a year, thus 18 months is really 18/12 years.

$\bf ~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \ 950\\ r=rate\to 2\%\to \frac{2}{100}\to &0.02\\ t=years\to \frac{18}{12}\to &\frac{3}{2} \end{cases} \\\\\\ A=950\left(1+0.02\cdot \frac{3}{2} \right)\implies A=950(1.03)\implies A=978.5$

Answer 2

it is 978.5

hope this helps