ruth invested $16,000 at 5 1/2% simple interest for 18 months. if she makes no other deposits or…

ruth invested $16,000 at 5 1/2% simple interest for 18 months. if she makes no other deposits or withdrawals, how much money will be in her account at the end of 18 months?\n$1,320.00\n$17,584.00\n$17,320.00\n$31,840.00

ruth invested $16,000 at 5 1/2% simple interest for 18 months. if she makes no other deposits or withdrawals, how much money will be in her account at the end of 18 months?\n$1,320.00\n$17,584.00\n$17,320.00\n$31,840.00

Answer

Explanation:

Step1: Convert time to years

18 months = $\frac{18}{12}= 1.5$ years

Step2: Identify the principal and rate

Principal $P = 16000$, rate $r=5.5%=0.055$

Step3: Use the simple - interest formula

The simple - interest formula is $I = Prt$, where $t$ is time in years. $I=16000\times0.055\times1.5$ $I = 16000\times0.0825$ $I = 1320$

Step4: Calculate the total amount

The total amount $A$ in the account is the sum of the principal and the interest, $A=P + I$. $A=16000 + 1320=17320$

Answer:

$17,320.00$