Question

QUESTION 3

Find the interest. Round to the nearest cent.

$1850 at 8% for 14 months

Answer 1

`I=\$172.67`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=14/12\ years\\ P=\$1,850\\r=0.08`

substitute in the formula above

`I=1,850(0.08(14/12))`

`I=\$172.67`