Question

Choose the correct answer for the amount of interest earned in the following simple interest problem. A deposit of $4,000 at 9.5% for 270 days

Answer 1

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

$\implies \text{270 days = }\frac{270}{365}\thinspace{ years}$

⇒ 270 days = 0.74 years

Now, Simple Interest = Principal × Rate × Time

⇒ Simple Interest = 4000 × 0.095 × 0.74

⇒ Simple Interest = $ 281.20

Answer 2

we know that

The simple interest formula is equal to

$I=P*r*t$

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

$P=\ 4,000\\ r=9.5\% = 0.095\\t=\frac{270}{365}$

Substitute the values in the formula above

$I=4,000*0.095*\frac{270}{365}$

$I=\ 281.10$

therefore

the answer is

The amount of interest earned is equal to $\ 281.10$