This problem is an example
of a simple interest.
What is given?
Principal = $1,567.12
Interest Rate = 1.9% or
0.019
Time = 9/12 or 9 months (Remember
that 9 months is not even a year, it is just a fraction of a year, there are 12
months in a year, thus 9 months is just 9/12)
The formula for simple
interest is I = Prt
So plug-in the values
I = Prt
= ($1,567.12) (0.019) (9/12)
= ($1,567.12) (0.01425)
= $22.33
$22.33 is the interest for
9 months, add that to the principal to get the account balance after 9 months.
= $22.33 + $1,567.12
= $1,589.45
Alternative solution: There’s
another formula which is A = P(1 + rt)
Where:
A is the accumulated
amount or future value
P is the principal
r is the interest rate
t is time
A = 1567.12 (1 + (0.019 *
9/12)
= $1.589.45
