Question

Pam has $60,000 in a savings account that earns 11% interest per year. The interest is not compounded. How much interest will she earn in 8 months?

Answer 1

The amount of interest is $4,400

Explanation:

To get the amount of interest, we use the simple interest formula

Mathematically;

I = PRT/100

I = interest

P is the amount deposited = $60,000

R is interest rate = 11%

t is time in years = 8/12 = 2/3

Substituting these values, we have

I = (60,000 * 11 * 2/3)/100

I = $4,400