Question

What is the simple interest accrued on a principal amount of $1750 at an annual rate of 6 1/2% for a period of 9 months, assuming 360 days in a year?

A) $89.06
B) $88.84
C) $89.24
D) $88.97

Answer 1

The simple interest accrued on a principal amount of $1750 at an annual rate of 6 1/2% for a period of 9 months is $89.06.

Step-by-step explanation:

To calculate the simple interest, we can use the formula:

Simple Interest = Principal × Rate × Time

Given:

• Principal amount = 1750
• Annual interest rate = 6 1/2% = 6.5%
• Period = 9 months = 9/12 years

Plugging in the values, we get:

Simple Interest = 1750 × 6.5% × (9/12)

Solving the expression, we find that the simple interest accrued is 89.06.