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How much simple interest does $1,500 earns in 7 months at an annual interest rate of 2.6%

User Genhis
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1 Answer

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Final answer:

The simple interest earned on $1,500 in 7 months at an annual interest rate of 2.6% is $27.25.

Step-by-step explanation:

To calculate the simple interest earned, you can use the formula:

Simple Interest = Principal x Interest Rate x Time

In this case, the principal is $1,500, the interest rate is 2.6%, and the time is 7 months.

Convert the interest rate to a decimal by dividing it by 100:

Interest Rate = 2.6%

= 0.026

Now, substitute the values into the formula:

Simple Interest = $1,500 x 0.026 x (7/12)

Simplify the expression:

Simple Interest = $27.25

Therefore, the simple interest earned on $1,500 in 7 months at an annual interest rate of 2.6% is $27.25.

User Wows
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