
Find the maturity value and the amount of simple interest earned.
​$4817 at 4.87​% for 8 months
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The maturity value is ​$
  
enter your response here.
​(Round to the nearest cent as​ needed.)

To find the maturity value and the amount of simple interest earned, we will use the formula for simple interest:

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

where:
- $ P $ is the principal amount ($4817),
- $ r $ is the annual interest rate (4.87% = 0.0487 as a decimal),
- $ t $ is the time period in years (8 months = $ \frac{8}{12} = \frac{2}{3} $ years).

### Step 1: Calculate the Interest $ I $
\[
I = 4817 \times 0.0487 \times \frac{2}{3}
\]

### Step 2: Calculate the Maturity Value
The maturity value $ A $ is the sum of the principal and the interest:
\[
A = P + I
\]

Let me calculate this for you.Let's go through the calculation manually.

### Step 1: Calculate the interest $ I $

\[
I = 4817 \times 0.0487 \times \frac{2}{3}
\]

First, multiply the interest rate by the time:
\[
0.0487 \times \frac{2}{3} = 0.0324667
\]

Now multiply by the principal:
\[
4817 \times 0.0324667 = 156.4025
\]

So, the interest earned is approximately **$156.40**.

### Step 2: Calculate the maturity value $ A $

The maturity value is the principal plus the interest:
\[
A = 4817 + 156.40 = 4973.40
\]

Thus, the maturity value is **$4973.40**.

Would you like more details or have any questions?

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Here are 5 related questions to expand your understanding:
1. How does the interest change with a higher interest rate?
2. What is the difference between simple interest and compound interest?
3. How would the maturity value change if the period was 1 year instead of 8 months?
4. Can you calculate the interest for different time periods, like 6 months or 1 year?
5. How does the principal affect the total interest earned?

**Tip**: Always convert the time period to years when using the simple interest formula to ensure accuracy.

Find the maturity value and the amount of simple interest earned. ​$4817 at 4.87​% for 8 months.

Learn how to calculate the simple interest and maturity value for $4817 at an interest rate of 4.87% over 8 months. This solution explains the steps for calculating interest and converting months into years, suitable for students in Grades 6-8.

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