2. Lupe put $11,500 in a certificate of deposit that gained simple interest at a rate of 6.7%. How much interest

did the account gain after 5 months?

321

Step-by-step explanation:

Principal amount = $11,500

Simple interest = 6.7%

time : 5 months

as simple interest is calculated for a year, time needs to be calculated in years

12 months comprises 1 year

1 month is equivalent to 1/12 years

thus, 5 month is equivalent to (1/12) * 5 years

time in years = 5/12

Simple interest is calculated by formula

SI = p*r*t/100

where SI is simple interest earned

p is principle amount

r is rate of interest

t is time in years

substituting the value of p, r and t in the formula for SI, we have

SI = (11500*6.7*5) / 12*100 = 321.04

interest, the account gained after 5 months is 321.