In order to calculate the interest earned, let's use the formula:
[tex]I=P\cdot i\cdot t[/tex]Where I is the interest, P is the principle, i is the interest rate and t is the amount of time.
Using P = 500, i = 0.07 and t = 8/12, we have:
[tex]\begin{gathered} I=500\cdot0.07\cdot\frac{8}{12} \\ I=23.33 \end{gathered}[/tex]So the interest earned in 8 months is $23.33.
