Question 553312: Leroy invests $9,500 at 16% simple interest. About how much interest will he earn in 8 months? Found 3 solutions by prateekagrawal, TutorDelphia, MathTherapy:Answer by prateekagrawal(56) (Show Source):
You can put this solution on YOUR website! 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.
The simple interest formula is
I = P r t where I is interest p is principle and r is rate
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.
Otherwise if that's the monthly rate we can just use 16%
So we have I=9500*1.33%*8 rewrite 1.33% as .0133 and multiply it out and we get 1010.8
If its 16% per month, it'd be 12,160 in interest
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