A $1500 investments has an annual simple interest rate of 7%. Find the simple interest earned on the investment after 18 months.
I = prt
I = 1500 * 0.07 * 1.5
I = ?
To find the simple interest earned on an investment, you can use the formula:
Simple Interest = Principal * Rate * Time
Where:
Principal = $1500 (the initial amount of the investment)
Rate = 7% per year (expressed as a decimal, so 7/100 = 0.07)
Time = 18 months (expressed in years, so 18/12 = 1.5)
Now, let's plug in the values into the formula:
Simple Interest = $1500 * 0.07 * 1.5
To calculate this:
Step 1: Multiply the principal by the rate: $1500 * 0.07 = $105
Step 2: Multiply the result by the time: $105 * 1.5 = $157.50
Therefore, the simple interest earned on the investment after 18 months is $157.50.