Nala invests 1500 in an account earning 6.57% simple interest. The balance in the account 16 months laterwill equal

Question

1. 1631.40

2. 1632.82

3. 1636.94

4. 1644.02

5. 2814.00

Answer 1

6.57% over 12 months is 6.57*16/12=8.76% over 16 months. The interest is therefore 8.77/100*1500=131.40 and the new balance is 1500+131.40=1631.40.

Comments

This is answer 1 from the list.