Question 524939
simple interest formula:
{{{ A = P*( 1 + t*r ) }}}
{{{ A }}} = amount after {{{t}}} years
{{{ P }}} = amount invested
{{{ r }}} = interest rate
For 1 year:
{{{ A = 5000*( 1 + 1*.08 ) }}}
{{{ A = 5000*1.08 }}}
{{{ A = 5400 }}}
$400 interest is earned in 1 year
3 months is {{{ 3/12 = 1/4 }}} of a year
{{{ (1/4)*400 = 100 }}}
$100 in interest is earned in 3 months