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7 June, 06:04

What will be the total amount earned by investing $2,500 for 1.5 years, at a simple interest rate of 10% annually.?

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Answers (2)
  1. 7 June, 06:29
    0
    The future value of money under simple interest is calculated using the equation: F = P (1+rt), where F is the future value, P is the present value, r is the interest rate, and t is the time in years.

    F = ($2500) (1+0.1*1.5) = ($2500) (1.15) = $2875
  2. 7 June, 06:48
    0
    The total amount earned by investing $2,500 for 1.5 years, at a simple interest rate of 10% annually is $2875.

    Formula is:

    F = P (1+rt),

    F is the future value,

    P is the present value,

    r is the interest rate, and

    t is the time in years.

    F = ($2500) (1+0.1*1.5)

    = ($2500) (1.15)

    = $2875
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