Question

Compute the simple interest earned on a deposit of $5000 at 8.5% for 120 days

Answer 1

Keeping in mind that 120 days is not even a year, since there are 365 days in a year, exluding leap-years, then 120 days is really 120/365 year.

$\bf ~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\to& \ 5000\\ r=rate\to 8.5\%\to \frac{8.5}{100}\to &0.085\\ t=years\to \frac{120}{365}\to &\frac{24}{73} \end{cases} \\\\\\ I=(5000)(0.085)\left( \frac{24}{73} \right)\implies I \approx 139.72602739726$