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# How much interest will $10,000 earn in 9 months at an annual  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Intern Joined: 24 Nov 2011 Posts: 1 Followers: 0 Kudos [?]: 0 [0], given: 0 How much interest will$10,000 earn in 9 months at an annual [#permalink]  24 Nov 2011, 23:44
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How much interest will $10,000 earn in 9 months at an annual rate of 6%? 9 months is 3/4 of an year , FINE , how is 6% = 3/50 ??? Manager Status: Essaying Joined: 27 May 2010 Posts: 154 Location: Ghana Concentration: Finance, Finance Schools: Cambridge GMAT 1: 690 Q47 V37 GPA: 3.9 WE: Accounting (Education) Followers: 1 Kudos [?]: 9 [0], given: 8 Re: HOW DO U DO INTEREST PROBLEMS [#permalink] 25 Nov 2011, 03:00 6% is 6/100 Divide by 2 and you get 3/50 Intern Joined: 07 Oct 2011 Posts: 30 Followers: 0 Kudos [?]: 3 [0], given: 1 Re: HOW DO U DO INTEREST PROBLEMS [#permalink] 21 Jan 2012, 07:05 How do you compute the answer to this q? thanks Math Expert Joined: 02 Sep 2009 Posts: 28731 Followers: 4576 Kudos [?]: 47164 [0], given: 7108 Re: HOW DO U DO INTEREST PROBLEMS [#permalink] 21 Jan 2012, 09:03 Expert's post karthiksms wrote: How do you compute the answer to this q? thanks Simple interest = principal * interest rate * time, where "principal" is the starting amount and "rate" is the interest rate at which the money grows per a given period of time (note: express the rate as a decimal in the formula). Time must be expressed in the same units used for time in the Rate. How much interest will$10,000 earn in 9 months at an annual rate of 6%?

9 months = 3/4 of year;
6% = 6/100=3/50;

$10,000(principal)*3/50(interest rate)*3/4(time)=$450.

Check Percents chapter of Math Book for more on this topic: math-number-theory-percents-91708.html

Hope it helps.
_________________
Re: HOW DO U DO INTEREST PROBLEMS   [#permalink] 21 Jan 2012, 09:03
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