Question

"Find the simple interest earned to the nearest cent for each principal, interest rate, and time:

Principal: $600
Interest Rate: 8%
Time: 1 month

Calculate the simple interest earned for this scenario and round it to the nearest cent."

Answer 1

The simple interest earned for a principal of $600, an interest rate of 8%, and a time of 1 month is $4.

Step-by-step explanation:

The formula for calculating simple interest is:

Interest = Principal x Rate x Time

For this scenario, the principal is $600, the interest rate is 8%, and the time is 1 month. To calculate the simple interest earned, substitute these values into the formula:

Interest = $600 x 8% x 1/12

Simplifying this equation gives:

Interest = $4

Therefore, the simple interest earned in this scenario is $4.