Topic 3 Roviow Time Remaining: 5328 Question 5 of 6 ( 1 point) I Question Attempt 1 of 1 1 2 3 4 5 6 Kala takes out a loan for her college tuition from a bank that charges simple interest at an annual rate of \( 14 \% \). Her loan is for \( \$ 6800 \) for 4 months. Assume e month is \( \frac{1}{12} \) of a year. Answer each part below. Do not round any intermediate computations, and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find the interest that will be owed after 4 months. \( \$ \square \) (b) Assuming Kala doesn't make any payments, find the amount owed after 4 months. \( \$ \)

To find the interest owed after 4 months using simple interest, we can use the formula: \[ I = P \times r \times t \] where \(I\) is the interest, \(P\) is the principal amount (\$6800), \(r\) is the annual interest rate in decimal form (0.14), and \(t\) is the time in years (4 months = \( \frac{4}{12} = \frac{1}{3} \) years). Calculating: \[ I = 6800 \times 0.14 \times \frac{1}{3} = 6800 \times 0.14 \times 0.3333 \approx 317.33 \] So, the interest owed after 4 months is approximately: \( \$317.33 \) For the total amount owed after 4 months, you simply add the interest to the principal: \[ \text{Total Amount} = P + I = 6800 + 317.33 \approx 7117.33 \] The total amount owed after 4 months is approximately: \( \$7117.33 \)