Question 1:
1 answer:
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Answer:
$265
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>
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First, change 4% into its decimal form:
4% -> -> 0.04
Next, we need to change the annual interest rate to 1.5 since 18 months is 1.5 years. Now plug in the values:
Eugene owes $265 of interest.