Question

find the simple interest earned when the principal is $500 at a rate of 10% held in the bank for 8 months

Answer 1

The Simple interest will be "$400".

Given values are:

• Principle, P = $500
• Interest rate, R = 10%
• Time, T = 8 months

As we know,

→ $Simple \ interest (SI) = \frac{P\times R\times T}{100}$

By substituting the values, we get

→                                  $=\frac{500\times 10\times 8}{100}$

→                                  $=5\times 10\times 8$

→                                  $= 400$ ($)

Thus the above response is correct.  

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