Question

Find the future value (in dollars) of an 18-month investment of $4,300 into a simple interest rate account that has an annual simple interest rate of 5.1%.

Answer 1

keeping in mind that a year has 12 months, thus 18 months is really 18/12 of a year, so

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$4300\\ r=rate\to 5.1\%\to (5.1)/(100)\dotfill &0.051\\ t=years\to (18)/(12)\dotfill &(3)/(2) \end{cases} \\\\\\ A=4300[1+(0.051)((3)/(2))] \implies A=4628.95`