#### Explanation:

The for simple interest is $S I = \frac{P \times R \times T}{100}$

The time is given in years, so in this case, the time of 5 months has to be converted to years by dividing by 12.

5 months = $\frac{5}{12}$ years.

$S I = \frac{7000 \times 5 \times \left(\frac{5}{12}\right)}{100}$

This can also be written as:

$S I = \frac{7000 \times 5 \times 5}{\text{ } 100 \times 12}$

SI = \$145.83