To find the simple interest paid on a $850 investment at 5.4% annual interest for 60 days, we can use the formula for simple interest:
Simple Interest = (Principal * Rate * Time) / 365
Where:
- Principal is the initial amount invested ($850 in this case)
- Rate is the annual interest rate (5.4% expressed as a decimal, which is 0.054)
- Time is the duration in days (60 days in this case)
- 365 is the number of days in a year
Let's calculate the simple interest:
Simple Interest = (850 * 0.054 * 60) / 365
Simple Interest = 2.20547945205
Rounding to the nearest cent, the simple interest paid on the $850 investment at 5.4% annual interest for 60 days is approximately $2.21.