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

$8\text{months}\cdot\frac{1\text{year}}{12\text{months}}=\frac{2}{3}\text{year}$

now convert the mixed number into a decimal number

$5\frac{1}{4}=\frac{5\cdot4+1}{4}=\frac{21}{4}=5.25$

since this is a percentage it can also be written as

$\frac{5.25}{100}=0.0525$

find the simple interest using the formula

$I=p\cdot r\cdot t$

replace data into the equation

$\begin{gathered} I=16700\cdot0.0525\cdot\frac{2}{3} \\ I=584.50 \end{gathered}$