## 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

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

## Answers ( )

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