Question

Mai invested $7000 in a money-market fund that paid 6.2% simple interest . What was the value of her account at the end of 18 months?

Answer 1

Depends it could be 14812 if they want total value or just the interest would be 7812

Answer 2

The formula of simple interest is: I=PRT
Where:
I stands for Interest
P stands for Price (or Principle Amount)
R stands for Rate
T stands for Time (in years)
I=PRT
=7000×0.062×1.5
(6.2%=
`(6.2)/(100)`=0.062)
(18 months=12 months and 6 months=1.5 year)
=$651
$7000+$651=$7651
By the end of 18 months, Mai has $7651 in her account