How much should you invest at 3.2% simple interest to earn $60 in 10months
We can start by using the simple interest formula:
Simple Interest = (Principal x Interest Rate x Time)
Where:
- Principal is the amount we need to find
- Interest Rate is 3.2% or 0.032 (in decimal form)
- Time is 10/12 or 0.8333 years (since 10 months is less than a year)
Substituting these values, we get:
60 = (Principal x 0.032 x 0.8333)
Simplifying:
Principal = 60 / (0.032 x 0.8333) = $22,784.36
Therefore, you should invest $22,784.36 at 3.2% simple interest to earn $60 in 10 months.