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29 Oct 2017, 01:28
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How much simple interest will $2,000 earn in 18 months at an annual rate of 6%? (A)$120
(B) $180 (C)$216
(D) $1,800 (E)$2,160

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Re: How much simple interest will $2,000 earn in 18 months at an annual [#permalink] ### Show Tags 29 Oct 2017, 08:27 Bunuel wrote: How much simple interest will$2,000 earn in 18 months at an annual rate of 6%?

(A) $120 (B)$180
(C) $216 (D)$1,800
(E) $2,160 $$Interest = 2000*\frac{18}{12}*\frac{6}{100}$$ So, $$Interest = 180$$ Thus, correct answer will be (B)$180
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Re: How much simple interest will $2,000 earn in 18 months at an annual [#permalink] ### Show Tags 08 Aug 2018, 03:34 Ans: B We know for Simple interest Root money is always constant, so we can get it either by monthly calculation of by 6% for full year 3% for half and .5% for each month. as we need to know for 1 full year and 1 half so Interest = 2000*.06*.03 = 180 ans. Bunuel wrote: How much simple interest will$2,000 earn in 18 months at an annual rate of 6%?
(A) $120 (B)$180
(C) $216 (D)$1,800
(E) $2,160 _________________ -------------------------------------------------------------------- The Mind is Everything, What we Think we Become. Senior SC Moderator Joined: 22 May 2016 Posts: 3063 How much simple interest will$2,000 earn in 18 months at an annual  [#permalink]

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08 Aug 2018, 09:58
1
Bunuel wrote:
How much simple interest will $2,000 earn in 18 months at an annual rate of 6%? (A)$120
(B) $180 (C)$216
(D) $1,800 (E)$2,160

The question asks only for interest earned.

Simple interest formula - Interest only
$$I=P*r*t$$
$$P=$$ principal
$$r=$$ rate in decimal form
$$t=$$ time in years

$$I=(2,000)(0.06)(1.5)$$
$$I=(2,000)(0.09)$$
$$I=(2,000*\frac{9}{100})=(20*9)=180$$

By hand
Each year, the $2,000 earns $$.06*2,000=120$$ That$120 interest payment per year never increases.

After 1 year = 12 months, interest earned: $$120$$

After 6 months = $$\frac{1}{2}$$ a year, interest earned:
$$(\frac{120}{year}*\frac{1}{2}yr)=60$$
Total interest earned: $$(120+60)=180$$

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