QueSLIUI A friend asks to borrow $250 for 18 months and agrees to pay 12% annual simple interest. How much interest will you earn? Round your answer to the nearest dollar. Provi…

Question

asked Feb 10, 2021 192k views

1 Answer

Bbien · Answer 1 · 2021-02-13T23:02:29+0000

Answer:

$90 of interest will be earned.

Explanation:

We are given the following in the question:

Principal,P = $250

Time, T = 18 months = 3 years

Rate, R = 12% = 0.12

Formula for simple interest:

I =(P* R* T)/(100)

Putting values, we get,

$I =(250* 12* 3)/(100) = \$90$

Thus, interest of $90 will be earned.