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Review Numbers & Money Exchange│ Unit1112B) Simple Interest –MonthsTo use the simple interest formula, the borrowing/ investing duration (Time) should be in year.If time is given in months, simply divide the number of monthsby 12. This is because there are 12 months in a year. See figure (4-3-1) for number of days in a month.JanFebMarAprMayJunJulAugSepOctNovDec3128/2931303130313130313031Figure (4-3-1): Number of Days in a Month29 ►NasserdepositedBHD1,000into a saving account at a Bank for 9 months. The annual simple interest rate on this account is 3.5%. How much will Nasserhave at the end of that period?Solution:S.I = P ×R ×T= 1,000 ×3.5% ×9 ÷ 12= BHD26.250A = P + S.I= 1,000 + 26.250= BHD1,026.250Example 4-3-3:Divide the number of months by 12Simple Interest│ Unit 4