Problema Solution
David had $4,000 invested for one-fourth of a year at a simple interest of 6.1%. How much interest did he earn?
Answer provided by our tutors
If the interest was 6.1% per month, then he earned
.061 * 4000 = 244 the first month
.061 * 4244 = 258 the second month
.061 * 4502 = 275 the third month
.061 * 4777 = 291 the fourth month
for a total earnings of 244+258+275+291= $1068