Final answer:
To calculate the simple interest for $1500 over 11 months at a 3.37% interest rate, you multiply the principal by the rate and the time in years. The approximate simple interest earned in this case would be $41.85.
Step-by-step explanation:
To calculate how much simple interest $1500 would earn in 11 months at an interest rate of 3.37%, we can use the formula for simple interest:
Simple Interest = Principal × Rate × Time
Where:
- Principal is the initial amount of money ($1500 in this case).
- Rate is the annual interest rate (3.37% or 0.0337 when expressed as a decimal).
- Time is the period for which the money is borrowed or invested, expressed in years (11 months which is approximately 11/12 of a year).
Plugging the values into the formula, we get:
Simple Interest = $1500 × 0.0337 × (11/12)
To find the interest earned in 11 months, you would perform the following calculation:
Simple Interest = $1500 × 0.0337 × (11/12) = $41.85 (rounded to two decimal places)
The total simple interest earned on $1500 at 3.37% interest rate over 11 months would be approximately $41.85.