Question

Determine the simple interest. (The rate is an annual rate unless otherwise stated. Assume 360 days in one year.)

p= $375, r = 9.5%, t = 60 days

The simple interest is $ ____
(Round to the nearest cent as needed.)

Answer 1

if there are 360 days in 1 year, then 60 days is 60/360 = 1/6 of a year.

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$375\\ r=rate\to 9.5\%\to (9.5)/(100)\dotfill &0.095\\ t=years\dotfill &(1)/(6) \end{cases} \\\\\\ I=(375)(0.095)((1)/(6))\implies I\approx 5.94`