Leroy invests $7,500 at 15% simple interest per year. How much interest will he earn in 10 months?
To calculate the interest earned, we first need to find the interest rate for 10 months.
The annual interest rate is given as 15%. To find the monthly interest rate, we divide the annual interest rate by 12 (the number of months in a year):
15% / 12 = 1.25% per month
Next, we calculate the interest earned using the formula:
Interest = Principal × Rate × Time
Here, the Principal is $7,500, the Rate is 1.25%, and the Time is 10 months.
Interest = $7,500 × (1.25% / 100) × 10
Now, let's calculate the interest:
Interest = $7,500 × (1.25 / 100) × 10
= $7,500 × 0.0125 × 10
= $750
Therefore, Leroy will earn $750 in interest over the course of 10 months.
I = prt
I = 7,500 * 0.15 * 0/8333
I = ?