Find the banker's interest to the nearest cent. Principal: $2,500; Rate: 9%; Time: 180 days: Interest:? (based on a 365 day year).

You can solve this problem by applying the Simple interest formula, which is:

I=PxRxT

I: Simple Interest.

P: Principal.

R: Rate

T: Time (It must be expressed in years or a fraction of years).

You have:

P=$2500

R=9%=0.09

T=180 days=180/365

When you substitute these values into the formula, you obtain:

I=PxRxT

I = ($2500) (0.09) (180/365)

I=$110.959