Question

You invest 2000 at a rate of 4% APR for a 3 months. How much interest did you earn?

Answer 1

3 months = 1/4 year
rate is 4
principle is 2000
interest = PRT/100

Answer 2

So it's 3x4x2000?

Answer 3

simple interest = principal*time*rate/100
= 2000*4*(1/4)/100
= $20

Answer 4

that makes sense. how do i convert 1/4 to a decimal for a calculator though?

Answer 5

type 1 divided by 4 and its a decimal

Answer 6

Oh alright. Thank you sooo much.

Answer 7

np ;) Just hit the blur button it helps me out alot :D