Sam deposited $350 into a savings account that paid 5% in simple interest. When he withdrew his money 8 months later, how much interest did he receive?
The equation for simple interest is I = P x R% x T I is simple interest P is principal, which is the amount u deposit in R% is the rate And T means the time
However, this question didn't list whether 5% is per annual or per monthly.
Suppose it's oer annual, From the numbers, we can substitute in Interest = 350 x (5%/12) x 8 Note that since the amount of time is in months, and one year has 12 months, so we need to change the rate into per monthly. Interest = 350 x (5%/12) x 8 Answer = $11.66666676
But suppose it's per monthly. This time we don't need to divide the rate by 12. Interest= 350 x 5% x 8 =$140
