Answer:
321
Step-by-step explanation:
Principal amount = $11,500
Simple interest = 6.7%
time :5 months
as simple interest is calculated for a year, time needs to be calculated in years
12 months comprises 1 year
1 month is equivalent to 1/12 years
thus, 5 month is equivalent to (1/12)* 5 years
time in years = 5/12
Simple interest is calculated by formula
SI = p*r*t/100
where SI is simple interest earned
p is principle amount
r is rate of interest
t is time in years
substituting the value of p, r and t in the formula for SI, we have
SI = (11500*6.7*5)\12*100 = 321.04
interest,the account gained after 5 months is 321.
