Answer: $45
Step-by-step explanation:
Simple interest is calculated as Principal x Rate x Time/100
From the information given,
Principal = $250
Rate = 12% = 12/100 = 0.12
Time = 18 months; because time is given in months, we divide by 12; time is therefore stated as 18/12.
Step 2: Plug the values into the formula:
Simple interest = 250 x 0.12 x 18/12
= $45
