Answer:
Interest earned $151.67
Step-by-step explanation:
To find out the amount of interest earned by simple interest.
Deposit = $7,000
Rate of interest = 6.5%
Time = 120 days
To calculate the interest of simple interest deposit, we use the formula :
I = Prt
I = Interest of the amount
P = Principal amount
r = Rate of interest ( in decimal )
t = time (in year)
Here we have to calculate the interest for 120 days so t would be 120 ÷ 360
I = 7000 × 0.065 × 120 ÷ 360
I = $151.666 ≈ $151.67
Interest earned $151.67
