Question

What would be the total amount after adding 8% interest for 3 months of $6,000.00?

Answer 1

See below

`i=$120`

Total = `$6,120`

Explanation:

Use the formula `Prt=i" "`

where `P= " principle" (6000)`
`r= " rate"` - as a decimal `(0.08)`,
`t= " time in years " (3/12 or 1/4)`
`i= " interest earned "`

`Prt=i" "6000*0.08*0.25=i`

`i=$120`

For the total, add on the `$6,000`

Answer 2

Total Amount = `$6000+$120 = $6,120`

Explanation:

You can work with the `%` as being over `100`

`SI = (PRT)/100`

Note that the time, `(T)`, is given as years.
Dividing months by `12` indicates years: `3` months =`3/12` years

`SI = (6000xx8xx3)/(" "100xx12)`

Easy cancelling gives the following:

`SI = (cancel60^5cancel(00)xx8xx3)/(cancel(100)xxcancel12)`

`SI = $120`

For the total amount we have to include the original `$6,000` as well.

Total Amount = `$6000+$120 = $6,120`