Question

#10 Round your answer to the nearest to two decimal points

Answer 1

Answer: $108.75

Given:

P = $5000

r = 8.7% = 0.087

t = 3 months

We will use the formula for the simple interest rate to solve for the interest penalty

`I=\text{Prt}`

Substitute the given values to the formula and we will get:

`\begin{gathered} I=\text{Prt} \\ I=(5000)(0.087)((3)/(12)) \\ I=108.75 \end{gathered}`

Therefore, the interest penalty is $108.75