How much should you invest at 4.4% simple interest in order to earn $85 interest in 11 months?
To find out how much you should invest at 4.4% simple interest in order to earn $85 interest in 11 months, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest earned
P = Principal amount (the amount you should invest)
r = Interest rate
t = Time in years
In this case, we know the interest earned (I) is $85, the interest rate (r) is 4.4% (which is equivalent to 0.044), and the time (t) is 11 months (which is equivalent to 11/12 of a year).
Let's substitute these values into the formula and solve for P:
85 = P * 0.044 * (11/12)
To isolate P, we divide both sides of the equation by (0.044 * (11/12)):
85 / (0.044 * (11/12)) = P
Now, let's calculate the principal amount (P):
P = 85 / (0.044 * (11/12))
P ≈ 846.59
Therefore, you should invest approximately $846.59 to earn $85 interest at 4.4% simple interest in 11 months.
I = PRT
85 = P * 0.044 * 0.9167