To calculate simple interest, we use the formula:

$\text{Interest} = P \times r \times t$

where:

• $P = 9060$ (principal),
• $r = 4.75\% = 0.0475$ (annual interest rate),
• $t = \frac{8}{12} = \frac{2}{3} \approx 0.6667$ years (since time must be in years for this formula).

Now, substitute these values:

$\text{Interest} = 9060 \times 0.0475 \times 0.6667$

Calculating step-by-step:

1. $9060 \times 0.0475 = 430.35$
2. $430.35 \times 0.6667 \approx 286.89$

So, the simple interest earned is approximately $286.89.

Would you like more details or have any questions?

Related Questions

1. How does simple interest differ from compound interest?
2. What if the time period were given in days instead of months?
3. How would the answer change if the interest rate was compounded monthly?
4. How is the formula adjusted for continuous compounding?
5. How do annual and effective interest rates differ in simple interest?

Tip: Simple interest grows linearly over time, making it easier to calculate compared to compound interest.