document.write( "Question 553312: Leroy invests $9,500 at 16% simple interest. About how much interest will he earn in 8 months? \n" ); document.write( "

Algebra.Com's Answer #360794 by TutorDelphia(193) $\"\"$ $\"About$

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From the wording of the problem its hard to tell if its at 16% interest per year, or 16% per month. Either way, it's a great deal.\r
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\n" ); document.write( "\n" ); document.write( "The simple interest formula is \r
\n" ); document.write( "\n" ); document.write( "I = P r t where I is interest p is principle and r is rate\r
\n" ); document.write( "\n" ); document.write( "if the interest is 16% per year, we'll need to get the interest per month by dividing by 12 which would give us a rate of 1.33% per month.\r
\n" ); document.write( "\n" ); document.write( "Otherwise if that's the monthly rate we can just use 16%\r
\n" ); document.write( "\n" ); document.write( "So we have I=9500*1.33%*8 rewrite 1.33% as .0133 and multiply it out and we get 1010.8\r
\n" ); document.write( "\n" ); document.write( "If its 16% per month, $\"I=9500%2A.16%2A8\"$ it'd be 12,160 in interest
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