Question

You saved 850$ from your summer job last summer. You put it in a account that earns simple interest each month. After 9 Months your account is worth 1,003$. What percent interest did you earn each month?

Answer 1

Interest earned=$1003−$850=$153
Principal=$850
Time=9 months
Rate=Interest per month

Use the formula to solve for interest: (Interest)=(Principal)×(Rate)×(Time)
153 = 850 × R × 9
Simplify.
153 = 7650 × R
Divide both sides by 7650.
0.02 = Rate
She earned 2% interest each month.