Compute the amount of interest earned in the following simple interest problem. A deposit of $8,000 at 9.5% for 120 days.
Assuming a 360-day year,
8000 * .095 * 1/3 = 253.33
your wrong
To compute the amount of interest earned, you can use the simple interest formula:
Interest = Principal × Rate × Time
Where:
Principal = $8,000
Rate = 9.5% (expressed as a decimal, so 9.5% = 0.095)
Time = 120 days
Let's substitute these values into the formula:
Interest = $8,000 × 0.095 × 120
Now, let's calculate the interest:
Interest = $8,000 × 0.095 × 120
= $76,000
Therefore, the amount of interest earned in this simple interest problem is $76,000.
To compute the amount of interest earned in a simple interest problem, you will need the principal amount, the interest rate, and the time period. In this case, the principal amount is $8,000, the interest rate is 9.5%, and the time period is 120 days.
To calculate the interest earned, you can use the formula:
Interest = (Principal * Interest Rate * Time) / (100 * 365)
Plugging in the given values:
Interest = (8000 * 9.5 * 120) / (100 * 365)
Let's break down the calculation step-by-step:
Step 1: Multiply the principal amount, interest rate, and time period.
Principal * Interest Rate * Time = 8000 * 9.5 * 120 = 913,600
Step 2: Divide the result by 100 multiplied by 365 (number of days in a year) to complete the computation.
Interest = 913,600 / (100 * 365) = 2,501.37
Therefore, the interest earned in this simple interest problem is approximately $2,501.37.