Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a year.)
-p = $810, r = 4%, t = 4 months
A) $129.60
B) $10.80
C) $1080.00
D) $8.10

Question

Quizplus · Accepted Answer

Simple interest can be calculated using the formula I = PRT, where I is the interest, P is the principal amount, R is the rate of interest per year, and T is the time in years. For this problem, P = $810, R = 4% or 0.04 (as a decimal), and T = 4 months or 4/12 years. Plugging these values into the formula gives I = 810 * 0.04 * (4/12) = $10.80.

Find the Simple Interest