Given:
Principal balance = P = $1,500
Annual interest rate = r = 10.9%
Time (in years) = 8 months = 8/12 = 2/3 years
For us to be able to determine the simple interest earned, we will be using the following formula:
[tex]\text{ Simple Interest = SI = }\frac{\text{PRT}}{100}[/tex]We get,
[tex]\text{ SI = }\frac{(1,500)(10.9)(\frac{2}{3})}{100}\text{ = }\frac{10,900}{100}[/tex][tex]\text{SI = \$109}[/tex]Therefore, the simple interest earned in 8 months will be $109.
