Question

note: please make sure to properly format your answers. all dollar figures in the answers need to include the dollar sign and any amount over 1, comma ($2,354.67). all percentage values in the answers need to include a percentage sign (%). for all items without specific rounding instruction two decimal places, show both decimal places (5.06). how much simple interest does $2,560 earn in 17 months at a rate of 1\frac{1}{8}%? round to the nearest cent.

Explanation:

Step1: Convert the time to years

Since there are 12 months in a year, 17 months $t=\frac{17}{12}$ years.

Step2: Convert the interest - rate to a decimal

The interest rate $r = 1\frac{1}{8}\%=\frac{9}{8}\%=\frac{9}{8\times100}= 0.01125$.

Step3: Use the simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. Given $P=\$2560$, $r = 0.01125$, and $t=\frac{17}{12}$, we have $I=2560\times0.01125\times\frac{17}{12}$.
First, $2560\times0.01125 = 2560\times\frac{9}{800}=28.8$.
Then, $28.8\times\frac{17}{12}=40.8$.

Answer:

$\$40.80$