Question

Jeanne loans her roommates $500.00 at 7% simple interest per year how much interest will Jeanne earn in eight months

Answer 1

In order to calculate the interest earned, let's use the formula:

`I=P\cdot i\cdot t`

Where I is the interest, P is the principle, i is the interest rate and t is the amount of time.

Using P = 500, i = 0.07 and t = 8/12, we have:

`\begin{gathered} I=500\cdot0.07\cdot(8)/(12) \\ I=23.33 \end{gathered}`

So the interest earned in 8 months is $23.33.