SOLUTION: $20,000 is invested at 16% per year for 3 months. How much interest is earned on the investment? I've tried 16% divided by 12 = 1 4/12 *3 = 2 1/3 is that right?

Question 325051: $20,000 is invested at 16% per year for 3 months. How much interest is earned on the investment?
I've tried 16% divided by 12 = 1 4/12 *3 = 2 1/3 is that right?
Found 2 solutions by rfer, nyc_function:
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
A=20000(1+.16/12)^3
A=20000(1+0.01333)^3
A=20000*1.04
A=20800
20800-20000=$800
Answer by nyc_function(2741) (Show Source): You can put this solution on YOUR website!
I = PRT is the formula you need.
NOTE: T = time (in years)
3 months = 3/12 or 1/4 years
We are searching for I.
I = (20,000)(0.16)(1/4)
I = $800

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