On March 31, you opened a savings account at a bank with a deposit of #$817.25.# At the end of October the interest was computed at an an rate of #5 3/4%# and added to the balance in your account. How much simple interest did your money earn?

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Answer 1 · 2017-05-18T17:53:00

#SI = $27.41# earned

To calculate the simple interest (#SI#) earned from an investment, use the formula:

#SI = (PRT)/100#

#P#= Principal - the initial amount borrowed or invested.
#R#= rate of interest as a #%#
#T# = time in years

In this example we have:
#P= $817.25#
#R = 5 3/4% =5.75%#
#T= 7# months = #7/12# years

#SI = (817.25 xx 5.75 xx 7)/(100xx12)#

#SI = $27.41#