Question

Craig Deloy deposited $800 in a new savings account. The bank pays 4.5% simple interest computed on a daily basis. He made no other deposits or withdrawals. How much simple interest will his money earn after 250 days?

Answer 1

keeping in mind that 250 days is not even a year, since there are 365 days in a year, assuming so, then 250 days is really 250/365 years.

$\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \ 800\\ r=rate\to 4.5\%\to \frac{4.5}{100}\dotfill &0.045\\ t=years\to \frac{250}{365}\dotfill &\frac{50}{73} \end{cases} \\\\\\ I=(800)(0.045)\left( \frac{50}{73}\right)\implies I\approx 24.658$