Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $1,295 at 7% for 180 days

(Note: Use 365 days in a year)

Answer 1

since there are 365 days in a year, so 180 days is really just 180/365 of a year, so

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$1295\\ r=rate\to 7\%\to (7)/(100)\dotfill &0.07\\ t=years\to (180)/(365)\dotfill &(36)/(73) \end{cases} \\\\\\ I = (1295)(0.07)((36)/(73))\implies I\approx 44.7`