Question

Jessica has an account with a credit union. Her account earns 2.4% simple interest yearly. Exactly a year and a half ago, she opened her account with $900.
How much interest has she earned so far?

Answer 1

The basic equation for interest is the investment amount(x) times the time in years(y) times the percent of interest(z).

That makes the equation:

x·y·z= amount with interest.

Lets plug in the numbers:

$900 x 1.5 x 2.4%

Now turn the percent into a decimal:

2.4% ----> .024

Now the equation is:

$900 x 1.5 x .024

Now do the math:

$900 x 1.5 = 1350
1350 x .024 = 32.4
1350 + 32.4 = 1382.4

The final answer is $1382.40

Hope this helps!