Carmen has $92,478 in a savings account that earns 14% annually. The interest is not compounded. To the nearest cent, how much interest will she earn in 9 months?

Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Round your answer to the nearest cent.

Question

Carmen has $92,478 in a savings account that earns 14% annually. The interest is not compounded. To the nearest cent, how much interest will she earn in 9 months?

Use the formula i = prt, where i is the interest earned, p is the principal (starting amount), r is the interest rate expressed as a decimal, and t is the time in years.

Round your answer to the nearest cent.

Quizzma Team · Answer

To find the interest Carmen will earn in 9 months, we will use the formula ( i = prt ).

1. Identify the variables:

– ( p ) (principal) = $92,478

– ( r ) (annual interest rate) = 14% = 0.14 (as a decimal)

– ( t ) (time in years) = 9 months = ( frac{9}{12} = 0.75 ) years

2. Plug the values into the formula:

[

i = 92,478 times 0.14 times 0.75

]

3. Calculate the interest:

[

i = 92,478 times 0.14 = 12,946.92

]

[

i = 12,946.92 times 0.75 = 9,709.19

]

So, Carmen will earn $9,709.19 in interest over 9 months.

Feel free to ask if you have any more questions or need further explanation!

1 Answer