Question

The simple interest earned on a deposit of $4,000 at 5% for 120 days.

Answer 1

Answer:

Option B  $\ 66.67$  

Step-by-step explanation:

we know that

The simple interest formula is equal to

$I=Prt$

where

P is the Principal amount of money to be invested

r is the rate of interest in decimal form

t is Number of Time Periods in years

in this problem

we assume that

$1\ month=30\ days$

$t=120\ days=(1/3)\ years\\ P=\ 4,000\\r=0.05$

substitute in the formula above

$I=\ 4,000*0.05*(1/3)=\ 66.67$  

Answer 2

B. I=PRT is the simple interest formula. 120 days is 4 months, or 1/3 of a year.
I=(4,000)(0.05)(0.33333)
I=$66.67