Question

3.

Answer 1

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