Answer:
The exact interest on $5,870 at 12% is $58.70.
Step-by-step explanation:
Given information:
Principal = $5870
Interest rate = 12% = 0.12
Time = June-December = 7 months.
We know that
1 year = 12 months
1/12 year = 1 month
7/12 year = 7 month
Time = 7/12 year
Formula for simple interest:
[tex]I=P\times r\times t[/tex]
where, P is principal, r is rate of interest and t is time in years.
Substitute P=5870, r=0.12 and t=7/12 in the above formula.
[tex]I=5870\times 0.12\times \frac{1}{12}[/tex]
[tex]I=5870\times 0.01[/tex]
[tex]I=58.70[/tex]
Therefore the exact interest on $5,870 at 12% is $58.70.
