Question

Rodrigo has $70,000 in a savings account that earns 9% interest per year. How much interest will he earn in 4 months?

Answer 1

Given

Rodrigo has $70,000 in a savings account that earns 9% interest per year. How much interest will he earn in 4 months?

Solution

Given parameters

$\begin{gathered} P=\text{ \ 70,000} \\ =\text{ 9\%} \\ T=\frac{4}{12}=\frac{1}{3}\text{YEAR} \end{gathered}$

The formula

$I=\frac{PRT}{100}$

Substitute the given parameter into the formula

$I=\frac{70000\times9\times1}{4\times100}=1575$

The final answer

$\text{Interest is \ }1,575$