Diane has $60,000 in a savings account that earns 8% annually. The interest is not compounded. How much will she have in 4 months?

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Diane has $60,000 in a savings account that earns 8% annually. The interest is not compounded. How much will she have in 4 months?

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    2021-10-11T05:03:18+00:00

    Interest = Principle x Rate x Time
    Let Interest = I, Principle = $60,000, Rate = 8%, and Time = 4 months
    You first need to convert 8% into decimal form: 8% x 100 = .08
    Then convert 4 months into years, a year is twelve months, so: 4/12 = 1/3
    Then substitute your values:
    I = (60,000)(.08)(1/3)
    Multiply 60,000 by .08, which equals 4,800:
    I = (4,800)(1/3)
    Multiple 4,800 by 1/3; 4,800/3 = 1,600:
    I = 1,600
    However, you’re not done yet, because the question asks, “How much will she have in 4 months?” Which means they want the total of money in her account. To find the total you add the interest with the principle, therefore the total would be: $1,600 + $60,00 = $61,600.
    So your final answer is $61,000

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