How much interest was earned on $108,310 for 120 months if it was invested at a 4.5% simple interest

Question

asked Jul 8, 2021 76.5k views

1 Answer

Muradm · Answer 1 · 2021-07-13T01:19:08+0000

Answer:

$48,739.50

Explanation:

You are going to want to use the simple interest formula for this.

I = Prt

P = principal amount

r = interest rate (decimal form)

t = time (years)

First convert 4.5% into its decimal form:

4.5% ->
(4.5)/(100) -> 0.045

Next, we need to change 120 months into years:

(120)/(12) =10

(10 years)

Now, plug in the values into the equation:

I=108,310(0.045)(10)

I=48,739.50

The interest earned after 120 months was $48,739.50