Answer:
I = $372.40
Step-by-step explanation:
Given the principal amount of $2,940, which is invested for 4 months at 3.8% interest rate:
Use the following simple interest formula to solve for the interest earned:
I = P × r × t
where:
I = interest earned
P = principal amount invested = $2,940
r = interest rate = 3.8% or 0.380
t = time = 4/12 months = ⅓ or 0.3333
Substitute to given values into the simple interest formula:
I = P × r × t
I = $2,940 × 0.380 × 0.3333
I = $372.40
Therefore, the simple interest earned in 4 months is $372.40.
