Question

Find the simple interest on 1050$ for 4 months at the rate of 3%

Answer 1

Explanation:

To find the simple interest, we can use the formula:

I = Prt

where:

I = simple interest

P = principal amount

r = interest rate per period

t = time period

Here, P = $1050, r = 3% per annum, and t = 4 months.

First, we need to convert the annual interest rate to a monthly rate:

3% per annum = 3/12% per month = 0.25% per month

Now, we can substitute the values into the formula:

I = 1050 * 0.0025 * 4

= $10.50

Therefore, the simple interest on $1050 for 4 months at the rate of 3% is $10.50.