Question

A bank has a savings rate of 6% simple interest per year. If a customer deposited $4,000 in a new account and does not add or withdraw any money to the account, how much simple interest will the customer make in 4 months?

Answer 1

Answer: The customer will make $80 as interest in 4 months.

Explanation:

Given: Deposited amount : P = $4000

Rate of interest per year : r= 6% =0.06

Rate of interest monthly =
`(r)/(12)=(0.06)/(12)=0.005`

Time = 4 months

Simple interest = principal x rate of interest x time

`=4000* 0.005* 4=80`

hence, the customer will make $80 as interest in 4 months.