Q:

3.Franco deposits $3600.00 in a savings account. The account pays an annual interest rate of 4%. He makes no other deposits or withdrawals. After 3 months, the interest is calculated. How much simple interest did his money earn?36.0038.0035.4737.00

Accepted Solution

A:
Answer:His money earned $36 after 3 monthsStep-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