Question

P = $3300, r = 5.3%, t = 8 monthsCalculate the simple interest earned. Round to the nearest cent.

Answer 1

The formula for finding simple interest is as given below

`I=\frac{\text{PRT}}{100}`
`\begin{gathered} I=\text{Interest} \\ P=P\text{rincipal} \\ r=\text{Rate} \\ t=\text{time in years} \end{gathered}`

The following were given in the question

`\begin{gathered} P=\text{ \$3300} \\ r=5.3\text{ \%} \\ t=8\text{months}=(8)/(12)\text{years}=(3)/(4)=0.75\text{years} \end{gathered}`

Substitute the given into the formula to get the value of the interest as shown below

`I=\frac{\text{Prt}}{100}=(3300*5.3*0.75)/(100)`
`\begin{gathered} I=(13117.5)/(100) \\ I=131.175 \end{gathered}`

Hence, the simple interest earn is $131. 175