What is the solution to the following equation? Please help!
1 answer:
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Answer:
$48,739.50
Step-by-step explanation:
You are going to want to use the simple interest formula for this.
<em>P = principal amount </em>
<em>r = interest rate (decimal form) </em>
<em>t = time (years)</em>
<em />
First convert 4.5% into its decimal form:
4.5% -> -> 0.045
Next, we need to change 120 months into years:
<em>(10 years)</em>
<em />
Now, plug in the values into the equation:
The interest earned after 120 months was $48,739.50