Answer: the amount of interest earned is $44.7
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the amount deposited.
P represents the principal or amount deposited.
R represents interest rate
T represents the duration in years.
From the information given,
P = $1295
R = 7%
T = 180 day. Assuming there are 365 days in a year. Converting 180 days to years, it becomes
180/365 = 0.49315 year
Therefore,
I = (1295 × 7 × 0.49315)/100 = $840,
I = $44.7
