Question

Find the simple interest earned, to the nearest cent, for each principal interest rate, and time.

Answer 1

$8.40

Step-by-step explanation:

From the given statement:

Principal = $840

Time = 6 Months

Rate = 2%

Note that Time must be in Years, therefore:

Time = 6 Months = 6/12 = 0.5 Years

`\begin{gathered} \text{Simple Interest }=P* R* T \\ =840*2\%*0.5 \\ =840*0.02*0.5 \\ =\$8.40 \end{gathered}`

The simple interest earned is $8.40