select the correct answer. calculate the simple interest. round to the nearest cent for, p = $4200, r = 8.5%…

select the correct answer. calculate the simple interest. round to the nearest cent for, p = $4200, r = 8.5% t = 3 months. (a) $89.00 (b) $89.15 (c) $89.20 (d) $89.25

select the correct answer. calculate the simple interest. round to the nearest cent for, p = $4200, r = 8.5% t = 3 months. (a) $89.00 (b) $89.15 (c) $89.20 (d) $89.25

Answer

Explanation:

Step1: Convert time to years

Since there are 12 months in a year, $t=\frac{3}{12}= 0.25$ years.

Step2: Use the simple - interest formula

The simple - interest formula is $I = Prt$, where $P$ is the principal amount, $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $P = 4200$, $r=0.085$ (since $8.5%=0.085$), and $t = 0.25$. Then $I=4200\times0.085\times0.25$. $I = 4200\times0.085\times0.25=(4200\times0.085)\times0.25 = 357\times0.25=89.25$.

Answer:

D. $89.25$