Answer:
$265
Step-by-step explanation:
We can use the simple interest formula for this:
[tex]A = P (1 + rt)[/tex]
P = initial balance
r = annual interest rate
t = time
First, change 4% into its decimal form:
4% -> [tex]\frac{4}{100}[/tex] -> 0.04
Next, we need to change the annual interest rate to 1.5 since 18 months is 1.5 years. Now plug in the values:
[tex]A=250(1+(0.04)(1.5))[/tex]
[tex]A=265[/tex]
Eugene owes $265 of interest.
