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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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