Chapter 9.6, Problem 31CCR

To determine

Tofind: thesimple interest.

Answer to Problem 31CCR

The simple interest is $\$1560$ .

Explanation of Solution

Given information:

  $\$480\text{ at 9}\%\text{ for 3 months}$

Formula used: $A=P\left(1+rt\right)$

Calculation: to find the simple interest, first substitute and then simplify,

  $\begin{array}{l}A=P\left(1+rt\right)\\ A=480\left(1+9\left(\frac{3}{12}\right)\right)\text{ [substitute]}\\ A=480\left(1+\frac{27}{12}\right)\text{ [multiply]}\\ A=480\left(\frac{39}{12}\right)\text{ [add]}\\ A=1560\text{ [multiply]}\end{array}$

Thus, the simple interest is $\$1560$ .