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## Question:

Choose the correct answer for the amount of interest earned in the following simple interest problem. A deposit of $4,000 at 9.5% for 270 days

## Answer:

we know that

The simple interest formula is equal to

where

I is the simple interest

P is the principal ( the amount borrowed or deposited)

r is the interest rate

t is the time

in this problem we have

Substitute the values in the formula above

therefore

__the answer is__

**The amount of interest earned is equal to **

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