The interest for the deposit of $7000 at 8.5% is $195.62.
'Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.'
According to the given problem,
Principal = $7000
Rate = 8.5%
Time = 120 days
= [tex]\frac{120}{360}[/tex] years
= [tex]\frac{1}{3}[/tex] years
Simple Interest = [tex]\frac{P * R * T}{100}[/tex]
= 7000 × 0.085 × [tex]\frac{1}{3}[/tex]
= $198.33
Hence, we can conclude, the interest for the given deposit would be $198.33.
Learn more about simple interest here:
https://brainly.com/question/25845758
#SPJ2
