Question

How much simple interest would $1,000 earn in 10 months at an interest rate of

4.21%?

A) SI = (P x R x T) / 12
B) SI = P / (R x T) / 12
C) SI = (P x R x T) x 12
D) SI = P x (R x T) / 12

Answer 1

The simple interest earned on $1,000 in 10 months at an interest rate of 4.21% is $35.08.

Step-by-step explanation:

Simple interest is calculated using the formula SI = (P x R x T) / 100, where SI is the simple interest, P is the principal amount, R is the rate of interest, and T is the time period.

For this question, the principal amount is $1,000, the rate of interest is 4.21%, and the time period is 10 months. Converting the rate to a decimal, we get 0.0421.

Now we can substitute the values into the formula:

SI = (1000 x 0.0421 x 10) / 12 = $35.08

Therefore, the simple interest earned on $1,000 in 10 months at an interest rate of 4.21% is $35.08.