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. $$ \$ $$

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**Step 1. Convert the time period to years**  
The loan duration is 4 months. Since each month is $$\frac{1}{12}$$ of a year, the time in years is:  
$$
t = \frac{4}{12} = \frac{1}{3} \text{ years}
$$

**Step 2. Calculate the interest owed using the simple interest formula**  
The simple interest formula is:  
$$
I = P \times r \times t
$$  
where:  
$$P = \$6800$$ (principal),  
$$r = 14\% = 0.14$$ (annual interest rate), and  
$$t = \frac{1}{3}$$ years.

Substitute the values into the formula:  
$$
I = 6800 \times 0.14 \times \frac{1}{3}
$$

First, compute $$6800 \times 0.14$$:  
$$
6800 \times 0.14 = 952
$$

Now, multiply by $$\frac{1}{3}$$:  
$$
I = 952 \times \frac{1}{3} \approx 317.33
$$

Thus, the interest owed after 4 months is:  
$$
\$317.33
$$

**Step 3. Calculate the total amount owed**  
The total amount owed is the sum of the principal and the interest:  
$$
\text{Total Amount} = P + I = 6800 + 317.33 = 7117.33
$$

Thus, the amount owed after 4 months is:  
$$
\$7117.33
$$
**Interest after 4 months:** \$317.33 **Total amount owed after 4 months:** \$7117.33

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