What is the amount of interest earned with a deposit of 7,000 at 6.5% for 120 days

3 years ago

I = Prt Always remember this. It si the essence fo Simple Interest. We have P = 5000 I = (5000) rt We ahve r = 0.085 I = (5000) (0.085) t We have t = 120 days. This is a little bit of a problem. Different things use different numbers of days for a total year. Let; s just use 365 days for a full year. I = (5000) (0.085) (120/365)

The interest figure always means the interest for a year.

120 days is 1/3 of a year, so you'll only earn 1/3 of 6.5%.

6.5% = 0.065

1/3 of that is 0.02167.

(0.02167) x (7,000) = 151.67