In one tear there are 12 months,
Determine the number of years in 20 months.
[tex]\begin{gathered} t=\frac{20}{12} \\ =\frac{5}{3} \end{gathered}[/tex]The formula for the interest earned is,
[tex]I=\frac{P\cdot r\cdot t}{100}[/tex]Determine the interest earned on 1250 over 5/3 years at rate of 3%.
[tex]\begin{gathered} I=\frac{1250\cdot3\cdot\frac{5}{3}}{100} \\ =\frac{1250\cdot5}{100} \\ =62.5 \end{gathered}[/tex]Thus interest earned is $62.5.
