Question

Compute the simple interest earned on a deposit of $5000 at 8.5% for 120 days

Answer 1

keeping in mind that 120 days is not even a year, since there are 365 days in a year, exluding leap-years, then 120 days is really 120/365 year.


`\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\to& \$5000\\ r=rate\to 8.5\%\to (8.5)/(100)\to &0.085\\ t=years\to (120)/(365)\to &(24)/(73) \end{cases} \\\\\\ I=(5000)(0.085)\left( (24)/(73) \right)\implies I \approx 139.72602739726`