Question 1146682
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(1) Find what percent of the $1200 investment the $27 of interest is:<br>
{{{27/1200 = 0.0225}}} = 2.25%<br>
(2) 3 months is 1/4 year.  Determine the annual interest if the interest in 1/4 year is 2.25%:<br>
{{{0.225*4 = 0.09}}} = 9%<br>
Or, formally....<br>
interest = principal times rate times time<br>
{{{I = prt}}}
{{{27 = (1200)(x)(1/4)}}}
{{{27 = 300x}}}
{{{x = 27/300 = .09}}} = 9%<br>