Answer: $150
Step-by-step explanation:
Hi, the question says:
Calculate the simple interest produced by $4500 at 5% simple annual interest in 8 months.
To answer this question we have to apply the simple interest formula:
I = p x r x t
Where:
I = interest
P = Principal Amount
r = Interest Rate (decimal form)
t = years
Since 1 year = 12 months;
For 8 months:
8/12 = 2/3 years
Replacing with the values given
I = 4500 x (5/100) x 2/3
I = $150
Feel free to ask for more if needed or if you did not understand something.
