The formula to find the simple interest I is
I = PRT
Here
P = Principal
R = rate of interest
T = time in years
The principal given is $1,348
The rate of interest is 2.5% = 0.025
Time = 18 months = 1=(18/12) years = 1.5
Substituting in the formula we get
I = 1348 × 0.025 × 1.5
I= $50.55
Also the amount = Principal + interest
Amount = 1348 + 50.55 = $1,398.55
The interest is $50.55
And the amount is $1,398.55
