Question

I need help finding the answer to this:

Answer 1

Answer:

He will earn $6 in interest in 9 months.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

$E = P*I*t$

In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

After t years, the total amount of money is:

$T = E + P$

Initial deposit of $400.

This means that $P = 400$

2% annual interest

This means that $I = 0.02$

How much interest will he earn in 9 months?

An year has 12 months, this means that $t = \frac{9}{12} = \frac{3}{4} = 0.75$

This is E. So

$E = P*I*t = 400*0.02*0.75 = 6$

He will earn $6 in interest in 9 months.