1 Answer

Roysh · Answer 1 · 2023-09-26T20:32:05+0000

In order to calculate the interest earned, let's use the formula:

$I=P\cdot i\cdot t$

Where I is the interest, P is the principle, i is the interest rate and t is the amount of time.

Using P = 500, i = 0.07 and t = 8/12, we have:

$\begin{gathered} I=500\cdot0.07\cdot(8)/(12) \\ I=23.33 \end{gathered}$

So the interest earned in 8 months is $23.33.

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