suppose 4.385 is placed in a savings account for 4 years . find the simple interest if the interest rate is 3.85%
To find the simple interest, you can use the formula:
Simple Interest = Principal x Interest Rate x Time Period
Given:
Principal amount (P) = $4.385
Interest Rate (R) = 3.85% = 0.0385 (since it is in decimal form)
Time Period (T) = 4 years
Plugging in the values into the formula:
Simple Interest = $4.385 x 0.0385 x 4
Calculating this:
Simple Interest = $0.67162
Therefore, the simple interest earned on $4.385 over 4 years at an interest rate of 3.85% is approximately $0.67162.
To calculate the simple interest, you need to use the formula:
Simple Interest (SI) = Principal (P) × Rate (R) × Time (T)
In this case, the principal (P) is $4.385, the interest rate (R) is 3.85% (or 0.0385 as a decimal), and the time (T) is 4 years.
So, let's plug in the values into the formula:
SI = $4.385 × 0.0385 × 4
To calculate the simple interest, multiply the principal ($4.385) by the interest rate in decimal form (0.0385), and then multiply that result by the time in years (4).
SI = $4.385 × 0.0385 × 4 = $0.67094
Therefore, the simple interest earned on the $4.385 deposit after 4 years at an interest rate of 3.85% is approximately $0.67094.