Answer:
$2,950
Step-by-step explanation:
We can use the simple interest formula for this:
<em>P = initial balance</em>
<em>r = annual interest rate</em>
<em>t = time</em>
First, change 12% into its decimal form:
12% -> -> 0.12
Next, we need to change the annual interest rate to 1.5 since 18 months is 1.5 years. Now plug in the values:
The total amount owed after 18 months is $2,950