Question

You invest $4,875 in a fund that pays 11% simple interest. How much interest willyou have earned after 7 months?DO NOT ROUND ANY NUMBERS UNTIL YOUR FINAL ANSWER!Round to the nearest cent. Do not put a $ in your answer.

Answer 1

The interest after 7 months is $312.81

Explanation:

Amount invested = $4875

rate = 11%

time = 7 months = 7/12 year

To get the interest, we will apply simple interest formula:

$\begin{gathered} I\text{ = PRT} \\ \text{where I = innterest} \\ P\text{ = principal = 4875} \\ R\text{ = 11\% = 0.11} \\ T\text{ = time = 7/12 } \end{gathered}$

Subtitute the values into the formula:

$\begin{gathered} I\text{ = 4875 }\times0.11\text{ }\times\text{ }\frac{7}{12} \\ I\text{ = 312.81} \end{gathered}$

The interest after 7 months is $312.81