Question

Tina's savings account earns 4.3% simple interestyearly. Two and a half years ago, she opened heraccount with $18000. How much interest has sheearned so far?

Answer 1

Notice that the interest is defined as yearly, then, we have to take the time period as 2 years (since the money was saved 2 and a half years ago), then, using the equation of simple interest we have:

$\begin{gathered} I=P\cdot n\cdot i \\ P=18,000 \\ n=2 \\ i=4.3\%=0.043 \\ \Rightarrow I=18,000(2\cdot0.043)=18000(0.086)=1548 \\ I=\ 1548 \end{gathered}$

Therefore, Tina has earned $1548