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
