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After 18 months, how much more will a
$2,500 investment make at a 5.5% simple
interest rate than a 4% simple interest rate?

Respuesta :

Answer:

Step-by-step explanation:

$2,500 x 4% =  it will be $100 yearly interest. so = 8.33 monthly interest

so 8.33 x 18 months = $150 yearly interest

$2,500 x 5% = $125 yearly interest. So = $10.42 monthly interest

$10.42 x 18 months= $187.50

Answer $37.50 more with 5.55%

Amount more ear with high interest rate is $56.25

Given that;

Amount invested = $2,500

High interest rate = 5.5%
Low interest rate = 4%

Number of month = 18 month = 1.5 year

Find:

Amount more ear with high interest rate

Computation:

Amount more ear with high interest rate = 2500[5.5% - 4%]1.5

Amount more ear with high interest rate = 2500[0.015]1.5

Amount more ear with high interest rate = $56.25

Learn more:

https://brainly.com/question/1506399?referrer=searchResults

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