Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $1,295 at 7% for 180 days = _____. (Note: Use 365 days in a year)

Answer 1

I = Prt, where P = $1,295; r = 7/100 = 0.07, t = 180/365

I = 1,295 x 0.07 x 180/365 = $44.70