Question

If $2,940.00 is invested for 4 months at 3.8% simple interest:

What is the amount of interest earned?

Answer 1

I = $372.40

Explanation:

Given the principal amount of $2,940, which is invested for 4 months at 3.8% interest rate:

Use the following simple interest formula to solve for the interest earned:

I = P × r × t

where:

I = interest earned

P = principal amount invested = $2,940

r = interest rate = 3.8% or 0.380

t = time = 4/12 months = ⅓ or 0.3333

Substitute to given values into the simple interest formula:

I = P × r × t

I = $2,940 × 0.380 × 0.3333

I = $372.40

Therefore, the simple interest earned in 4 months is $372.40.