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3 years ago

12

Matt has 80,000 in a savings account. The interest rate is 12% pre year and is not compounded. How much will he have in 4 months

1 answer:

DENIUS [597]3 years ago

7 0

Matt will earn 3,200 interest in 4 months.

Given:
principal : 80000
interest rate : 12%
term : 4/12 *4 months in a year

Simple Interest = Principal x Interest rate x term

S.I. = 80000 x 12% x 4/12
= 9600 x 4/12
S.I. = 3,200

OR
12% ÷ 12 month = 1% per month

S.I. = 80000 x 1% per month x 4 months
S.I. = 800 x 4 months
S.I. = 3,200

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<h2> $13 \: \: units$ </h2>

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Give me a comment if you want the explanation.

1.) $\mathrm{Apply\:exponent\:rule:\:}\left(a^b\right)^c=a^{bc},\:\quad \mathrm{\:assuming\:}a\ge 0$

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