Question

How much interest was earned on $108,310 for 120 months if it was invested at a 4.5% simple interest

Answer 1

Answer:

$48,739.50

Step-by-step explanation:

You are going to want to use the simple interest formula for this.

$I = Prt$

P = principal amount

r = interest rate (decimal form)

t = time  (years)

First convert 4.5% into its decimal form:

4.5% -> $\frac{4.5}{100}$ -> 0.045

Next, we need to change 120 months into years:

$\frac{120}{12} =10$

(10 years)

Now, plug in the values into the equation:

$I=108,310(0.045)(10)$

$I=48,739.50$

The interest earned after 120 months was $48,739.50