we know that
The simple interest formula is equal to
[tex] I=P*r*t [/tex]
where
I is the simple interest
P is the principal ( the amount borrowed or deposited)
r is the interest rate
t is the time
in this problem we have
[tex] P=\$4,000\\ r=9.5\% = 0.095\\t=\frac{270}{365}[/tex]
Substitute the values in the formula above
[tex] I=4,000*0.095*\frac{270}{365}[/tex]
[tex] I=\$281.10[/tex]
therefore
the answer is
The amount of interest earned is equal to [tex] \$281.10[/tex]
Answer:
Simple Interest = $ 281.20
Step-by-step explanation:
Principal = $4000
Rate = 9.5%
= 0.095
Time = 270 days
Changing the time into years :
1 year = 365 days
[tex]\implies \text{270 days = }\frac{270}{365}\thinspace{ years}[/tex]
⇒ 270 days = 0.74 years
Now, Simple Interest = Principal × Rate × Time
⇒ Simple Interest = 4000 × 0.095 × 0.74
⇒ Simple Interest = $ 281.20
