Question

Find the simple interest earned to the nearest cent for each principal, interest rate, and time.

Answer 1

Answer:

Interest earned at 3.9 percent rate is $31.2

Interest earned at 2 percent rate is $5.8

Step-by-step explanation:

A = P(1 + rt)

Where 'A' is the amount, 'r' is the rate and 't' is the time in years

When;

P = $1200

r = 3.9%

t = $\frac{8}{12}$ years

Then,

A = $1200(1 + 0.039($\frac{8}{12}$))

A = $1200 + $31.2 = $1231.2

Interest = Amount - Principal

Interest earned at 3.9 percent rate is $1231.2 - $1200 = $31.2

When;

P = $580

r = 2%

t = $\frac{6}{12}$ years

Then,

A = $580(1 + 0.02($\frac{6}{12}$))

A = $580 + $5.8 = $585.8

Interest earned = Amount - Principal

Interest earned at 2 percent rate = $585.8 - $580 = $5.8