How much interest is earned on ₱6,200 at 4% for one year?

To calculate the interest earned on ₱6,200 at 4% for one year, we can use the simple interest formula:

\[
\text{Interest} = P \times r \times t
\]

Where:
- \( P \) is the principal amount (₱6,200)
- \( r \) is the annual interest rate (4% or 0.04)
- \( t \) is the time in years (1 year)

Now, let's compute the interest:

\[
\text{Interest} = 6,200 \times 0.04 \times 1 = 248
\]

So, the interest earned is **₱248**.

Would you like more details or have any other questions?

Here are 5 related questions:
1. How much total amount will you have after adding the interest to the principal?
2. What would the interest be if the rate was 5% instead of 4%?
3. How much interest would be earned if the time was 2 years instead of 1 year?
4. What happens to the interest if you invest ₱6,200 for 6 months at 4% per year?
5. How do compound interest and simple interest differ?

**Tip:** Simple interest only applies to the principal, while compound interest earns interest on both the principal and previously earned interest.

Learn how to calculate the simple interest earned on ₱6,200 at 4% for one year. Using the formula Interest = P × r × t, we determine that the interest earned is ₱248. This problem is suitable for students in Grades 5-7 and covers essential concepts of simple interest and percentages.

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