Respuesta :
Using simple interest, we have that:
A) The interest due after 8 months is $11,272.33.
B) The total value of the investment will be of $189,986.24.
The amount of interest earning using simple interest, after t years, with an yearly interest rate of i and an initial investment of P is given by:
[tex]E = Pit[/tex]
In this problem:
- Deposit of $178,000, hence [tex]P = 178000[/tex].
- Interest rate of 9.5% per year, hence [tex]i = 0.095[/tex].
- 8 months, the time is in years, hence [tex]t = \frac{8}{12} = \frac{2}{3}[/tex]
Item a:
[tex]E = Pit[/tex]
[tex]E = 178000(0.095)\frac{2}{3} = 11272.33[/tex]
The interest due after 8 months is $11,272.33.
Item b:
For the second interest, we consider [tex]P = 11272.33[/tex], hence:
[tex]E_2 = Pit[/tex]
[tex]E_2 = 11272.33(0.095)\frac{2}{3} = 713.91[/tex]
The total value will be composed by:
- The initial deposit of $178,000.
- The first interest of $11,272.33.
- The second interest of $713,91.
Hence, it will be:
[tex]T = 178000 + 11272.33 + 713.91 = 189986.24[/tex]
The total value of the investment will be of $189,986.24.
A similar problem is given at https://brainly.com/question/13176347
