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.

Step-by-step explanation:

Given: Deposited amount : P = $4000

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

Rate of interest monthly = $\dfrac{r}{12}=\dfrac{0.06}{12}=0.005$

Time = 4 months

Simple interest = principal x rate of  interest x time

$=4000\times 0.005\times 4=80$

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