Question

Using the formula for finding the simple interest, I = Prt, find the Interest earned in a savings account by depositing $9,800 for 15 months at 5% simple interest

Answer 1

let's recall that a year has 12 months, thus 15 months is really 15/12 of a year.

`~~~~~~ \textit{Simple Interest Earned} \\\\ I = Prt\qquad \begin{cases} I=\textit{interest earned}\\ P=\textit{original amount deposited}\dotfill & \$9800\\ r=rate\to 5\%\to (5)/(100)\dotfill &0.05\\ t=years\to (15)/(12)\dotfill &(5)/(4) \end{cases} \\\\\\ I = (9800)(0.05)((5)/(4)) \implies I = 612.5`