SOLUTION: If 5000 is invested at 8% simple interest for 3 months, how much interest is earned

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Question 524939: If 5000 is invested at 8% simple interest for 3 months, how much interest is earned
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
simple interest formula:
+A+=+P%2A%28+1+%2B+t%2Ar+%29+
+A+ = amount after t years
+P+ = amount invested
+r+ = interest rate
For 1 year:
+A+=+5000%2A%28+1+%2B+1%2A.08+%29+
+A+=+5000%2A1.08+
+A+=+5400+
$400 interest is earned in 1 year
3 months is +3%2F12+=+1%2F4+ of a year
+%281%2F4%29%2A400+=+100+
$100 in interest is earned in 3 months