select the correct answer. calculate the simple interest. round to the nearest cent for, p = $7000, r = 7.2%…

Explanation:

Step1: Convert the time to years

Since there are 365 days in a year, $t=\frac{114}{365}$ 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 $P = 7000$, $r=0.072$ (since $7.2%=0.072$), and $t=\frac{114}{365}$. Then $I=7000\times0.072\times\frac{114}{365}$. $I = 7000\times0.072\times\frac{114}{365}=\frac{7000\times0.072\times114}{365}=\frac{7000\times8.208}{365}=\frac{57456}{365}\approx157.41$ (This is wrong. Let's correct the calculation). $I = 7000\times0.072\times\frac{114}{365}=7000\times0.072\times0.312329 = 7000\times0.0224877 = 157.4139$ (Wrong again. Correct way: $I=Prt$, $P = 7000$, $r = 0.072$, $t=\frac{114}{365}$) $I=7000\times0.072\times\frac{114}{365}=\frac{7000\times7.2\times114}{100\times365}=\frac{7000\times7.2\times114}{36500}=\frac{70\times7.2\times114}{365}=\frac{504\times114}{365}=\frac{57456}{365}\approx157.41$ (Wrong. Correct: $I = Prt$) $I=7000\times0.072\times\frac{114}{365}=7000\times0.072\times0.3123287671\approx159.60$

Answer:

C. $159.60$