Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $8,000 at 9.5% for 120 days.
A. 253.33
B. 365.00
C. 7,746.67
D. 91,200.00

Answer 1

Hi there

I=prt
P principle 8000
R interest rate 0.095
T time 120/360
I interest earned?

I=8,000×0.095×(120÷360)
I=253.33

Hope it helps

Answer 2

Answer:

Option A. 253.33

Step-by-step explanation:

We have to get the amount of simple interest earned in this problem

Principal amount  P = $800

Rate of interest  R = 9.5%

Time or period of investment  T = 120 days = $\frac{1}{3}year$

We will use the formula of Interest =

$\frac{P*R*T}{100}$

$\frac{8000*9.5*1}{3*100}= 253.33$

Option A. 253.33 is the answer