Question

Find the simple interest Principal Time in Months Rate 1 5=% $16.700 8 The simple interest is s {Round to the nearest cent.)

Answer 1

Start by making the time in months in years

`8\text{months}\cdot\frac{1\text{year}}{12\text{months}}=(2)/(3)\text{year}`

now convert the mixed number into a decimal number

`5(1)/(4)=(5\cdot4+1)/(4)=(21)/(4)=5.25`

since this is a percentage it can also be written as

`(5.25)/(100)=0.0525`

find the simple interest using the formula

`I=p\cdot r\cdot t`

replace data into the equation

`\begin{gathered} I=16700\cdot0.0525\cdot(2)/(3) \\ I=584.50 \end{gathered}`