Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $8,000 at 9.5% for 120 days.

A. 253.33
B. 365.00
C. 7,746.67
D. 91,200.00

Answer 1

Hi there

I=prt
P principle 8000
R interest rate 0.095
T time 120/360
I interest earned?

I=8,000×0.095×(120÷360)
I=253.33

Hope it helps

Answer 2

Option A. 253.33

Explanation:

We have to get the amount of simple interest earned in this problem

Principal amount P = $800

Rate of interest R = 9.5%

Time or period of investment T = 120 days =
`(1)/(3)year`

We will use the formula of Interest =

`(P*R*T)/(100)`

`(8000*9.5*1)/(3*100)=$253.33`

Option A. 253.33 is the answer