Answer:
nevada will earn $300 interest and the total balance after 18 months is $4,300.
Step-by-Step Explanation:
we use this following formula to find how much interest nevada has :
simple interest = principal * interest rate * time
since the amount of time is in months, we have to convert it into years. we use interest in years ONLY.
1 year = 12 months
1.5 years = 18 months
now that we have the correct values to use this formula in, we now substitute the numbers in.
simple interest = principal * interest rate * time
simple interest = $4,000 * 0.05 * 1.5
here, we converted the percentage rate into a decimal because obviously, you cannot directly multiply percentages by money or normal numbers.
simple interest = principal * interest rate * time
simple interest = $4,000 * 0.05 * 1.5
simple interest = $200 * 1.5 (we multiplied the first two values first so it's easier to get the final answer)
simple interest = $300
we now have to find the total balance on nevada's account after 18 months by using the following formula :
total amount = principal + simple interest
since we know the amount of principal and interest already, all we have to do is substitute the numbers in.
total amount = principal + simple interest
total amount = $4,000 + $300
total amount = $4,300
therefore, nevada's total balance on her account after 18 months is $4,300.
