[-/10 Points] DETAILS MY NOTES AUFQR2 4.1.008. You deposit \( \$ 1,200 \) in an account earning an annual interest rate of \( 10.5 \% \). Calculate the simple interest earned (in dollars) in 4 months. \( \$ \square \)

To calculate the simple interest earned in 4 months, you can use the formula for simple interest, which is \( I = P \times r \times t \). Here, \( P \) is the principal amount (\$1,200), \( r \) is the annual interest rate (10.5% or 0.105), and \( t \) is the time in years (4 months = 4/12 = 1/3 years). So, plug in the values: \[ I = 1200 \times 0.105 \times \frac{1}{3} = 1200 \times 0.105 \times 0.3333 \approx 42.00 \] Thus, the simple interest earned in 4 months is approximately \( \$42.00 \). --- Interest rates have such a long history, dating back to ancient Mesopotamia, where the concept of lending goods and receiving payments with interest emerged. Scribes used clay tablets to record these transactions. Fast forward to today, interest rates are a key part of our financial systems, impacting everything from loans to savings and investments! If you're planning to use simple interest more often, remember to double-check your time conversion! Many people mistakenly think of months as a full year, leading to overestimating interest. Always convert the time correctly to avoid getting burned by your calculations!