Find the simple interest earned and the total amount in the following investment accounts. Show work
27. $900 invested at 11% for 2 years.
28. $1,250 invested at 9% for 5 months.
27. Simple interest earned:
I = PRT/100
I = (900)(11)(2)/100
I = $198
Total amount:
A = P + I
A = 900 + 198
A = $1,098
28. First, we need to convert the time period of 5 months to a fraction of a year:
5 months = 5/12 years
Simple interest earned:
I = PRT/100
I = (1250)(9)(5/12)/100
I = $46.88
Total amount:
A = P + I
A = 1250 + 46.88
A = $1,296.88