Question

Karen took out a loan for $725 with a 2.5% interest rate that is compounded annually. No additional money will be deposited or withdrawn from the account. How much in interest will Karen pay back at the end of 18 months?

Answer 1

$29

Explanation:

You divide 2.5 by 100 the you multiply that by 725 and sense its months it would be converted to 1.6 so you multiply 725 1.6 and the answer to 2.5 divide by 100