The rule of the simple interest is
[tex]I=P\times R\times T[/tex]P is the initial amount
R is the rate in decimal
T is the time in years
Since Kim places $1250, then
P = 1250
Since the rate is 4.25%, then
[tex]R=\frac{4.25}{100}=0.0425[/tex]Since the time is 60 months, divide it by 12 to change it to years
[tex]\begin{gathered} T=\frac{60}{12} \\ T=5 \end{gathered}[/tex]Substitute them in the rule above
[tex]\begin{gathered} I=1250\times0.0425\times5 \\ I=265.625 \end{gathered}[/tex]Round it to the nearest hundredth
I = $265.63
