Question

Find the simple interest. $7,064 at 6.5% for 8 months

$306.11

$3,673.28

$3,061.07

$367.33

Answer 1

Correct Ans:
$306.11

Solution:
The formula for the simple interest rate is:

I = Prt

Here,
P = Principal amount = $ 7064
r = Interest rate = 6.5% = 0.065
t = Duration in years = 8/12 years

Using the values in above formula, we get:

Interest = I = 7064 x 0.065 x 8/12 = $306.11

Therefore, the simple interest will be $306.11 on an amount of $7064 with interest rate of 6.5%, saved over 8 months.