SOLUTION: 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?

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Question 864616: 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 by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
Let's assume there are 365 days in the year (sometimes banks use 360 days in the year, but we'll go with 365 since it's more accurate). This would mean 270 days turns into 270/365 years. Because t is usually in years, t = 270/365


The deposit is $4,000, so P = 4000


The interest rate is 9.5% ---> 9.5/100 = 0.095 so r = 0.095


We'll use these to plug them into the formula I = P*r*t


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I = P*r*t


I = 4000*0.095*(270/365)


I = 281.095890410959 use a calculator here


I = 281.10 round to the nearest penny


So you've earned $281.10 in interest.