Question

What is the interest earned given the following:$10,200 at 8.5% for 10 months

Answer 1

Hello!

To calculate Simple Interest, we have to use the formula below:

`S.I.=P* R* T`

• P, = principal (10,200)

,

• R, = rate (8.5% = 0.085)

,

• T, = time (10)

Let's replace these values in the formula that I mentioned:

`\begin{gathered} S\mathrm{}I\mathrm{}=P* R* T \\ SI=10,200\cdot0.085\cdot10 \\ S\mathrm{}I=8,670 \end{gathered}`

So, the interest earned is $8,670.