6.1 simple and compound interest (due tuesday, september 23)\nscore: 4/20 answered: 5/11\nquestion 4\nhow…

Explanation:

Step1: Convert time to years

3 months = $\frac{3}{12}= 0.25$ years.

Step2: Recall simple - interest formula

The simple - interest formula is $I = Prt$, where $I$ is the interest, $P$ is the principal (the amount invested), $r$ is the annual interest rate (in decimal form), and $t$ is the time in years. Given $I = 100$, $r=0.038$ (since $3.8%=0.038$), and $t = 0.25$. We need to solve for $P$.

Step3: Rearrange the formula to solve for $P$

From $I = Prt$, we can get $P=\frac{I}{rt}$.

Step4: Substitute the values

Substitute $I = 100$, $r = 0.038$, and $t=0.25$ into the formula: $P=\frac{100}{0.038\times0.25}$. $P=\frac{100}{0.0095}\approx10526.32$.

Answer:

$10526.32$