How much interest is earned after 9 months if the original principal is $2500 and the rate is 3%?

1 Answer
Feb 11, 2018

Interest = $56.25

Explanation:

First we need to use the correct equation:

I = p*r*t

Where I is the amount of interest we earn, p is the Principal investment, r is the rate, and t is how much time in years.

Then we supply the given information into our equation.

I = $2500 * 3% * 9/12

Note: 3% = 0.03 & the time is 9/12 instead of 9 because t is in years

Finally we multiply to get our answer:

2500 * 0.03 * 0.75 = 56.25

So $56.25 is how much interest was earned in 9 months at a 3% interest rate.

Note: If the question asked how much money was left after 9 months $56.25 would be incorrect for you would need to add the original investment aswell.