Correct Ans:
$306.11
Solution:
The formula for the simple interest rate is:
I = Prt
Here,
P = Principal amount = $ 7064
r = Interest rate = 6.5% = 0.065
t = Duration in years = 8/12 years
Using the values in above formula, we get:
Interest = I = 7064 x 0.065 x 8/12 = $306.11
Therefore, the simple interest will be $306.11 on an amount of $7064 with interest rate of 6.5%, saved over 8 months.
