Answer:
Option (a) is correct.
The amount of interest earned in the given simple interest problem is $140.25
Step-by-step explanation:
Given : A deposit of $5,000 at 8.5% for 120 days.
We have to calculate the amount of interest earned in the given simple interest problem.
Using Simple interest formula,
[tex]SI=\frac{P \times r\times t}{100}[/tex]
Where SI denotes simple interest
P denotes principal
R denotes rate of interest
t denotes time period.
Thus,
Given : P = $5,000
r= 8.5%
t = 120 days
1 year = 365 days.
So , 120 days = [tex]\frac{120}{365}[/tex] year.
Substitute, we get,
[tex]SI=\frac{P \times r\times t}{100}[/tex]
[tex]SI=\frac{5000 \times 8.5\times 120}{100\times 365}[/tex]
On simplify, we get,
SI =$ 139.72
Thus, out of given options nearest value is $140.25 (approx)
Thus, the amount of interest earned in the given simple interest problem is $140.25
