suppose you deposit $2,475 in a savings account that earns 6.25% simple interest per year. How much simple interest would be ear

Question

3 years ago

12

ned in 9 months when time is measured in years

1 answer:

Nikolay [14] · Answer 1 · 2022-05-20T03:06:56+03:00

$116.02 interest will be earned in 9 months

Step-by-step explanation:

The formula for simple interest is given by:

$I = Prt$

Here

P is the initial amount

r is the interest

t is the time measured in years

Given

P = $2475

r = 6.25% = $\frac{6.25}{100} = 0.0625$

t = 9 months

Converting time into year by dividing by 12

$t = \frac{9}{12}\ years = 0.75\ year$

Putting the values in the formula

$I = 2475 * 0.0625 * 0.75\\I = 116.0156$

Rounding off to nearest hundredth

I = $116.02

Hence,

$116.02 interest will be earned in 9 months

Keywords: Interest, simple interest

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