Question

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

Answer 1

The Solution.

The formula for calculating simple interest is

`S.I=(P* R* T)/(100)`

In this case,

`\begin{gathered} P=\text{ \$3300, R=5.3\%, T=8months=}(8)/(12)=(2)/(3)\text{years} \\ S.I=\text{simple Interest=?} \end{gathered}`

Substituting these values in the formula above, we get

`S\mathrm{}I=(3300*5.3*(2)/(3))/(100)=(3300*5.3*2)/(100*3)`
`S\mathrm{}I=11*5.3*2=116.6\approx\text{ \$116.60 or 11660 cent}`

Thus, the correct answer is $116.60 or 11660 cent.