Question
you deposit $750 in an account that pays 1.2% interest. What values do you use in the simple interest formula I = prt to find the interest earned after 18 months?
Answers
GPT-4o mini
To use the simple interest formula \( I = prt \) to calculate the interest earned after 18 months, you need to identify the values for \( p \), \( r \), and \( t \):
1. **\( p \)** (the principal amount): This is the initial deposit. In your case, \( p = 750 \) dollars.
2. **\( r \)** (the annual interest rate): This is given as a percentage, so you need to convert it to a decimal for the formula. The interest rate is 1.2%, which is \( r = \frac{1.2}{100} = 0.012 \).
3. **\( t \)** (the time the money is deposited or borrowed, in years): Since you want to calculate the interest for 18 months, you need to convert that into years. 18 months is equal to \( \frac{18}{12} = 1.5 \) years.
Now, you can plug these values into the formula:
- \( p = 750 \)
- \( r = 0.012 \)
- \( t = 1.5 \)
So, the interest earned after 18 months can be calculated as follows:
\[
I = 750 \times 0.012 \times 1.5
\]
You can perform the calculation to find the interest earned.
1. **\( p \)** (the principal amount): This is the initial deposit. In your case, \( p = 750 \) dollars.
2. **\( r \)** (the annual interest rate): This is given as a percentage, so you need to convert it to a decimal for the formula. The interest rate is 1.2%, which is \( r = \frac{1.2}{100} = 0.012 \).
3. **\( t \)** (the time the money is deposited or borrowed, in years): Since you want to calculate the interest for 18 months, you need to convert that into years. 18 months is equal to \( \frac{18}{12} = 1.5 \) years.
Now, you can plug these values into the formula:
- \( p = 750 \)
- \( r = 0.012 \)
- \( t = 1.5 \)
So, the interest earned after 18 months can be calculated as follows:
\[
I = 750 \times 0.012 \times 1.5
\]
You can perform the calculation to find the interest earned.