Final answer:
To calculate the interest earned in 8 months, we can use the formula for simple interest.
Step-by-step explanation:
To calculate the interest earned in 8 months, we need to consider that the interest rate is 13% per year and not compounded. First, we need to convert 8 months into years by dividing it by 12: 8/12 = 0.67 years. Next, we can use the formula for simple interest: Interest = Principal x Rate x Time. In this case, the Principal is $90,000 and the Rate is 13%. Plugging in the values, we get: Interest = $90,000 x 0.13 x 0.67 = $7,503.
Andrew will earn $7,800 in interest over 8 months on his $90,000 savings at a 13% annual interest rate. To calculate this, we first find the annual interest by multiplying the principal amount by the interest rate: $90,000 * 0.13 = $11,700 annual interest. Since interest is not compounded and he is earning for only 8 months, we then find the monthly interest by dividing the annual interest by 12 and multiplying this by 8. So, the calculation will be ($11,700 / 12) * 8, yielding $7,800.