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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?

Verified Answer :

wat2132

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

penfila11Pen

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%=\(\frac{6.2}{100}\)=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

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