3. Franco deposits $3600.00 in a savings account. The account pays an annual interest rate of 4%. He makes no other deposits or withdr

Question

3.
Franco deposits $3600.00 in a savings account. The account pays an annual interest rate of 4%. He makes no other deposits or withdrawals. After 3 months, the interest is calculated. How much simple interest did his money earn?

36.00

38.00

35.47

37.00

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Mackenzie 2 weeks 2021-11-22T02:09:26+00:00 1 Answer 0

Answers ( )

    0
    2021-11-22T02:10:54+00:00

    Answer:

    His money earned $36 after 3 months

    Step-by-step explanation:

    * Lets revise the rules of simple interest

    – Simple Interest Equation (Principal + Interest)

     A = P(1 + rt)

    – Where:

    • A = Total amount (principal + interest)  future amount

    • P = Principal Amount

    • I = Interest Amount

    • r = Rate of Interest per year in decimal; r = R/100

    • t = Time Period involved  

    * To calculate the interest I use the formula

      I = P × r × t

    * Lets solve the problem

    – The rate is annual

    – The interest calculated after 3 months

    ∴ I = P × R/100 × t/12

    ∵ P = $3600.00

    ∵ R = 4%

    ∵ t = 3 month

    ∴ I = 3600.00 × 4/100 × 3/12 = $36

    * His money earned $36 after 3 months

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