joshua won $250000 in a draw to support the local hospital. he does not need the money for 3 months, so he decides to invest it in an account that pays 8% simple interest annually.
calculate the interest paid on joshua's investment at the end of the 3 month period.
nvm again... sorry
To calculate the interest paid on Joshua's investment at the end of the 3-month period, we first need to determine the interest rate for a 3-month period.
Since the account pays 8% simple interest annually, we can divide the annual interest rate by 4 to get the quarterly interest rate. (Since there are 4 quarters in a year.)
Quarterly interest rate = (Annual interest rate) / 4
Quarterly interest rate = 8% / 4 = 2%
Next, we need to calculate the interest earned on the principal amount for the 3-month period.
Interest = (Principal) x (Interest rate) x (Time)
Interest = ($250,000) x (2%) x (3/12) (3 months out of 12 months)
Simplifying the equation:
Interest = $250,000 x 2% x 0.25
Calculating the result:
Interest = $250,000 x 0.02 x 0.25 = $1,250
Therefore, the interest paid on Joshua's investment at the end of the 3-month period will be $1,250.