Question

how much simple interest does $2,560 earn in 17 months at a rate of 5 and 1/8%? round to the nearest cent.

Answer 1

Answer:

It would earn $ 185.87 ( approx )

Step-by-step explanation:

Since, the simple interest formula is,

$I=\frac{P\times r\times t}{100}$

Where,

P = principal amount,

r = rate per period,

t = number of periods,

Here,

P = $ 2,560,

r = $5\frac{1}{8}\%=\frac{41}{8}\%$

t = $\frac{17}{12}$  years,   ( ∵ 1 year = 12 months )

Hence, the simple interest would be,

$I=\frac{2560\times \frac{41}{8}\times \frac{17}{12}}{100}$

$=\frac{1784320}{9600}$

$\approx \ 185.87$

Answer 2

Answer

$185.86667

Explanation

The formula for simple interest is:

I = PRT

Where I ⇒ interest

           P ⇒ amount deposited.

          R ⇒ interest rate

          T ⇒ period for investing

17 months = 17/12 years

5 1/8 = 5.125

∴ I = 2,560 ×17/12 × 5.125/100

     = 2560 × 17/12 × 0.05125

      = $185.86667

To the nearest tenth answer = $185.90