Question

determine the simple interest.
p = $1306.55, r = 1\frac{1}{4}\\% per month, t = 2 months

the simple interest on $1306.55 at 1\frac{1}{4}\\% per month for 2 months is $\square.
(round to the nearest cent.)

Explanation:

Step1: Convert rate to decimal

First, convert $1\frac{1}{4}\%$ to a decimal. $1\frac{1}{4} = 1.25$, so $1.25\% = \frac{1.25}{100} = 0.0125$

Step2: Apply simple interest formula

Use the simple interest formula $I = p \times r \times t$, where $p=\$1306.55$, $r=0.0125$, $t=2$.
$I = 1306.55 \times 0.0125 \times 2$

Step3: Calculate the product

First compute $1306.55 \times 0.0125 = 16.331875$, then multiply by 2: $16.331875 \times 2 = 32.66375$

Step4: Round to nearest cent

Round $32.66375$ to the nearest cent, which is $\$32.66$

Answer:

$\$32.66$