if $3200 is invested for 9 months at 5% annually what is the Amount of Simple Interest Earned & total amount at the end of term

Question

if $3200 is invested for 9 months at 5% annually what is the Amount of Simple Interest Earned & total amount at the end of term

Answer 1

The formula for simple interest is I = Prt, where I = the amount of interest earned, P = the principal (amount of original investment), r = the interest rate, and t = time. In the problem, P = $3200, t = 9 months = 9/12 = 3/4 year, and r = 5% = 0.05. You have all the necessary information to solve the above equation for I, the amount of simple interest. Once you compute that, you can add it to the Principal ($3200) in order to determine the total amount at the end of the term.