Calculate the simple interest earned. Round to the nearest cent.

*P* = $5000, *r* = 4.5%, *t* = 15 days

$ 




To calculate the simple interest earned, we use the simple interest formula:

\[
\text{Interest} = P \times r \times t
\]

where:
- $ P = 5000 $ (principal),
- $ r = 4.5\% = 0.045 $ (annual interest rate as a decimal),
- $ t = 15 $ days.

Since the interest rate is annual, we need to convert the time from days to years. There are typically 365 days in a year, so:

\[
t = \frac{15}{365}
\]

Now, plug these values into the formula:

\[
\text{Interest} = 5000 \times 0.045 \times \frac{15}{365}
\]

Calculating this:

\[
\text{Interest} = 5000 \times 0.045 \times 0.0411 \approx 9.23
\]

The simple interest earned is approximately **$9.23**.

Would you like further details, or have any questions?

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Here are five related questions:
1. How would the interest change if the rate were 5% instead of 4.5%?
2. What would the interest be if the time were 30 days instead of 15 days?
3. How would the calculation change if the interest were compounded daily?
4. What is the simple interest for a principal of $10,000 over 15 days at 4.5%?
5. How does simple interest differ from compound interest over short periods?

**Tip:** Converting time to match the rate's period (like days to years) is essential in interest calculations.

Calculate the simple interest earned. Round to the nearest cent.

P = $5000, r = 4.5%, t = 15 days

Learn to calculate the simple interest earned on a $5000 principal with a 4.5% annual rate over 15 days. This problem includes key concepts such as the simple interest formula, time conversion to years, and rounding to the nearest cent. Ideal for students in Grades 6-8.

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