Question

An account earns simple interest. Find the interest earned. $1200 at 2.8% for 30 months

Answer 1

let's bear in mind that a year has 12 months, so 30 months is really 30/12 years.

`\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$1200\\ r=rate\to 2.8\%\to (2.8)/(100)\dotfill &0.028\\ t=years\to (30)/(12)\dotfill &(5)/(2) \end{cases} \\\\\\ I=(1200)(0.028)\left( (5)/(2) \right)\implies I=84`