Find the simple interest. (The rate is an annual rate unless otherwise noted. Assume 360 days in a year.)
-p = $61,600, r = 7%, t = 3 months
A) $107,800.00
B) $1078.00
C) $1437.33
D) $12,936.00

Question

Quizplus · Accepted Answer

Simple interest can be calculated using the formula $I = P \times r \times t$, where $I$ is the interest, $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. Given $P = \$61,600$, $r = 7\% = 0.07$, and $t = 3$ months $= \frac{3}{12}$ years, the interest is $I = \$61,600 \times 0.07 \times \frac{3}{12} = \$1,078.00$.

Find the Simple Interest