Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $8,000 at 9.5% for 120 days.

Answer 1

I=prt
I=8,000×0.095×(120÷360)
I=253.33

Answer 2

So we would begin this problem with the simple interest equation:
A=P(1+rt)
the t (time) is in years so we divide 120 by 365
Then we can plug in the information we already know
A=8000(1+.095(.33))
A=8000(1.03135)
A=8250.8
So in total, it is $8250.80