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Choose the correct answer for the amount of interest earned in the following simple interest problem. A deposit of $4,000 at 9.5% for 270 days

Verified Answer :

calculista

we know that

The simple interest formula is equal to

\(I=P*r*t\)

where

I is the simple interest

P is the principal ( the amount borrowed or deposited)

r is the interest rate

t is the time

in this problem we have

\(P=\$4,000\\ r=9.5\% = 0.095\\t=\frac{270}{365}\)

Substitute the values in the formula above

\(I=4,000*0.095*\frac{270}{365}\)

\(I=\$281.10\)

therefore

the answer is

The amount of interest earned is equal to \(\$281.10\)

Answer:

Simple Interest = $ 281.20

Step-by-step explanation:

Principal = $4000

Rate = 9.5%

       = 0.095

Time = 270 days

Changing the time into years :

1 year = 365 days

\(\implies \text{270 days = }\frac{270}{365}\thinspace{ years}\)

⇒ 270 days = 0.74 years

Now, Simple Interest = Principal × Rate × Time

⇒ Simple Interest = 4000 × 0.095 × 0.74

⇒ Simple Interest = $ 281.20

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