Question

A savings account earns 6% simple interest per year. The principal is $800. What is the balance after 18 months?

Answer 1

$872

Explanation:

Simple interest = Principle * Rate * Time / 100

= ( 800 * 6 * 18/12 ) / 100

= $ 72

The balance after 18 months = principle + interest

= 800 + 72

= $ 872