Question

Find the simple interest. Principal Time in Months Rate 1 $11.800 21% 4 The simple interest is $ (Round to the nearest cent.)

Answer 1

we use the formula

Where Cn is the final amount= co the initial amount, n the number of months and i the rate dividing between 100

transform the mixed number

`2(1)/(4)=2.25`

now, replace

`\begin{gathered} Cn=11,800(1+(4)*((2.25)/(100))) \\ \\ Cn=11,800(1.09) \\ \\ Cn=12862 \end{gathered}`

the solution is 12,862