1.5 x 4.25%= 6.375%
convert to decimal: 6.375/100 = 0.06375
simple interest: 160000 x 0.06375 = $10,200
I = PRT ... Interest = Principle x Rate x Time.
>> but banks do not pay simple interest. goofle your terms and re-learn your financial terms and functions.
{and one DEPOSITS money in a bank account. "Investment" is not really a good term, because there is no risk re: the loss of principle.}
The question is what is the simple interest earned on an investment of $160,000 that is invested in the bank for 18 months at an annual rate of 4.25%
I have no idea how to work out simple interest.
