Simple Interest- help!

xForever21x

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Apr 27, 2011
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An investment earns 7.5% simple interest in one year. If the money is withdrawn before the year is up, the interest is prorated so that a proportional amount of the interest is paid out. If $600 is invested, what is the total amount that can be withdrawn when the account is closed out after 4 months?
Please help! :?
 
xForever21x said:
An investment earns 7.5% simple interest in one year. If the money is withdrawn before the year is up, the interest is prorated so that a proportional amount of the interest is paid out. If $600 is invested, what is the total amount that can be withdrawn when the account is closed out after 4 months?
Please help! :?
Let us do similar but different problem:

An investment earns 12% simple interest in one year. If the money is withdrawn before the year is up, the interest is prorated so that a proportional amount of the interest is paid out. If $1000 is invested, what is the total amount that can be withdrawn when the account is closed out after 6 months?

Simple interest earned for 6 months = 1000 * 0.12 * 6/12 = $60

So the total amount that can be withdrawn after 6 months = 1000 + 60 = $ 1060
 
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