Question

Rodrigo has $70,000 in a savings account that earns 9% interest per year. How much interest will he earn in 4 months?

Answer 1

Given

Rodrigo has $70,000 in a savings account that earns 9% interest per year. How much interest will he earn in 4 months?

Solution

Given parameters

`\begin{gathered} P=\text{ \$70,000} \\ =\text{ 9\%} \\ T=(4)/(12)=(1)/(3)\text{YEAR} \end{gathered}`

The formula

`I=(PRT)/(100)`

Substitute the given parameter into the formula

`I=(70000*9*1)/(4*100)=1575`

The final answer

`\text{Interest is \$}1,575`