Answer :
Answer:
He will earn $6 in interest in 9 months.
Step-by-step explanation:
This is a simple interest problem.
The simple interest formula is given by:
[tex]E = P*I*t[/tex]
In which E is the amount of interest earned, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.
After t years, the total amount of money is:
[tex]T = E + P[/tex]
Initial deposit of $400.
This means that [tex]P = 400[/tex]
2% annual interest
This means that [tex]I = 0.02[/tex]
How much interest will he earn in 9 months?
An year has 12 months, this means that [tex]t = \frac{9}{12} = \frac{3}{4} = 0.75[/tex]
This is E. So
[tex]E = P*I*t = 400*0.02*0.75 = 6[/tex]
He will earn $6 in interest in 9 months.