Question

Can someone help me on this

Answer 1

Remember that the formula for simple interest is:

$I = Prt$

• $I$ is the interest earned
• $P$ is the principal amount invested
• $r$ is the interest rate, represented as a decimal
• $t$ is the amount of time in years

Using information the problem gave us, we can say that the amount of interest earned after one year is:

$I = (\ 350)(0.06)(1) = \ 21$

After 1 year, we will have earned $21. Remember though that we also need to find the amount we will earn after 4 months. Since there are 12 months in a full year, we can say that 4 mohts represents a third of a year. Thus, let's multiply our interest by one-third.

$\ 21 \cdot \dfrac{1}{3} = \ 7$

After 4 months, we will have generated $7 and after one year we will have generated $21.