Find the simple interest on a $18,800 investment made for 9 months at an interest rate of 10% per year. What is the future value Round to the nearest ten.
A)The simple interest is $1,410, the future value is $20,230.
B) The simple interest is $1,400, the future value is $20,200.
C) The simple interest is $1,410, the future value is $20,210.
D) The simple interest is $1,440, the future value is $20,240.
E) The simple interest is $1,430, the future value is $20,230.

Question

Find the simple interest on a $18,800 investment made for 9 months at an interest rate of 10% per year. What is the future value  Round to the nearest ten.  
A)The simple interest is $1,410, the future value is $20,230.
B) The simple interest is $1,400, the future value is $20,200.
C) The simple interest is $1,410, the future value is $20,210.
D) The simple interest is $1,440, the future value is $20,240.
E) The simple interest is $1,430, the future value is $20,230.

Quizplus · Accepted Answer

To find the simple interest, we use the formula I= P * r * t where I is the interest earned, P is the principle (or initial investment), r is the interest rate, and t is the time (in years). 
Converting 9 months to years, we get t= 9/12= 0.75 years. 
Plugging in the values, we get 
I= 18,800 * 0.10 * 0.75= 1,410. 
To find the future value, we add the simple interest to the principle: 
FV= P + I = 18,800 + 1,410 = 20,210. 
Rounding to the nearest ten, we get $20,210 as the future value. So the correct answer is C.

Find the Simple Interest on a $18,800 Investment Made for 9