Question

Compute the amount of interest earned in the following simple interest problem. A deposit of $10,000 at 9.5% for 90 days = _____. $237.50 $855.00 $23,750.00 $85,500.00

Answer 1

Compute the amount of interest earned in the following simple interest problem.
A deposit of $10,000 at 9.5% for 90 days = _____.

$237.50

Answer 2

Answer with explanation

Principal(P) = $ 10,000

Rate of interest(R) = 9.5 %

Duration of time(T) =90 days

$=\frac{90}{360}\\\\=\frac{1}{4} {\text{of a year}}$

Formula of Simple Interest

$S.I=\frac{P \times R \times T}{100}\\\\S.I=\frac{10000 \times 9.5 \times 1}{100 \times 4}\\\\ S.I=\frac{950}{4}\\\\S.I=237.50$

Option A : $ 237.50→→Amount of interest earned