# Chapter 8 - Personal Finance - 8.3 Simple Interest - Exercise Set 8.3: 5

$I=\$318.75$#### Work Step by Step The formula for simple interest is:$I=Prt$where P = principal amount borrowed r = interest rate per year t = time Use the formula above to obtain:$I=\$5000(8.5\%)(\frac{9}{12}) \\I=\$5000(0.085)(\frac{9}{12}) \\I=\$318.75$

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