How much interest is earned on 6200 pesos at 4% for one year?

To calculate the interest earned, we can use the formula for **simple interest**:

\[
I = P \times r \times t
\]

Where:
- \(I\) is the interest
- \(P\) is the principal amount (6200 pesos)
- \(r\) is the annual interest rate (4% = 0.04)
- \(t\) is the time in years (1 year)

Substitute the values into the formula:

\[
I = 6200 \times 0.04 \times 1 = 248
\]

So, the interest earned on 6200 pesos at 4% for one year is **248 pesos**.

Would you like more details on how the formula works or have any other questions?

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Here are some related questions:
1. How would the interest change if the time period was 2 years?
2. What if the interest rate was compounded annually instead of being simple interest?
3. How do you calculate compound interest for the same scenario?
4. What if the principal was in a different currency, such as dollars?
5. How does the interest change with a different interest rate, like 5%?

**Tip:** Always double-check if the interest is simple or compounded, as the formula varies significantly.

Discover how to calculate the simple interest earned on 6200 pesos at an interest rate of 4% over one year. This step-by-step solution walks through the simple interest formula (I = P × r × t) to find the interest of 248 pesos. Suitable for students in Grades 6-8.

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