Question

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

Answer 1

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.