Question

What is the simple interest earned in 4 months on a $300

savings account at an annual rate of 5%?

Answer 1

$60

Explanation:

Multiply $300 (the total amount of money) by 0.05 (the annual rate)

300 x 0.05 = 15

Then, Multiply the number of months, to 15

15 x 4 = 60

$60 of simple interest earned in 4 months