Question

Find the simple interest Principal Rate Time in Months $10000 The simple interest is $ (Round to the nearest cent as

Answer 1

start by converting the number of months into years

`3months\cdot\frac{1\text{year}}{12\text{months}}=(1)/(4)\text{years}=0.25\text{years}`

continue by applying the simple interest formula

`I=p\cdot r\cdot t`

in which p is the principal, r is the rate and t is the time in years

`\begin{gathered} I=10000\cdot0.04\cdot0.25 \\ I=100 \end{gathered}`

The simple interest is $100