How much money must be invested at 6.3 % simple interest to earn $250 in interest each month?
0.083 = 1/12 = 1 month
I think I made a mistake though. This method will give a more accurate answer.
250 * 12 = 3000 yearly interest
3,000 = P * 0.063
47.619.05 = P
where did you get 0.083
Yup. Thank you
I = PRT
250 = 0.063P * 0.083
250/0.0052 = P
48,076.92 = P
y do u have to do 1/12.... wow 2015
nvmd
saw the correction
To find out how much money must be invested at 6.3% simple interest to earn $250 in interest each month, we can use the formula for simple interest:
Simple Interest = Principal × Rate × Time
In this case, we are given the interest per month ($250) and the interest rate (6.3%). We need to find the principal amount.
Let's plug the given values into the formula:
$250 = Principal × 6.3% × (1 month)
To calculate 6.3% of the principal, we need to convert the percentage into a decimal by dividing it by 100:
6.3% ÷ 100 = 0.063
Now we can rewrite the equation:
$250 = Principal × 0.063 × (1 month)
To isolate the principal, divide both sides of the equation by 0.063:
$250 ÷ 0.063 = Principal × (1 month)
Simplifying the left side:
$3,968.25 = Principal × (1 month)
Therefore, the amount that must be invested at 6.3% simple interest to earn $250 in interest each month is approximately $3,968.25.