To calculate simple interest, use the formula:

$I = P \times r \times t$

where:

• $I$ is the interest,
• $P$ is the principal (initial amount),
• $r$ is the annual interest rate (as a decimal),
• $t$ is the time in years.

Given values:

• $P = 5000$
• $r = 4.5\% = 0.045$
• $t = 15$ days, which we convert to years as $t = \frac{15}{365}$.

Step-by-Step Solution

1. Convert days to years: $t = \frac{15}{365} \approx 0.0411$

2. Substitute values into the formula: $I = 5000 \times 0.045 \times 0.0411$

3. Calculate the interest: $I \approx 9.23$

Answer

The simple interest earned is approximately $9.23.

Would you like more details or have any questions?

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Here are some related questions to explore:

1. How would the interest change if the time period was increased to 30 days?
2. What would be the interest if the principal was $10,000 instead?
3. How does compounding differ from simple interest in this scenario?
4. What is the formula for compound interest, and how does it apply here?
5. How is time converted for interest calculation in other time units (e.g., months)?

Tip: Always convert days to years in interest calculations to match the annual rate.