Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $10,000 at 9.5% for 90 days = _____. $237.50 $855.00 $23,750.00 $85,500.00

Answer 1

Compute the amount of interest earned in the following simple interest problem.
A deposit of $10,000 at 9.5% for 90 days = _____.

$237.50

Answer 2

Answer with explanation

Principal(P) = $ 10,000

Rate of interest(R) = 9.5 %

Duration of time(T) =90 days

`=(90)/(360)\\\\=(1)/(4) {\text{of a year}}`

Formula of Simple Interest

`S.I=(P * R * T)/(100)\\\\S.I=(10000 * 9.5 * 1)/(100 * 4)\\\\ S.I=(950)/(4)\\\\S.I=237.50`

Option A : $ 237.50→→Amount of interest earned