Matt will earn 3,200 interest in 4 months.
Given:
principal : 80000
interest rate : 12%
term : 4/12 *4 months in a year
Simple Interest = Principal x Interest rate x term
S.I. = 80000 x 12% x 4/12
= 9600 x 4/12
S.I. = 3,200
OR
12% ÷ 12 month = 1% per month
S.I. = 80000 x 1% per month x 4 months
S.I. = 800 x 4 months
S.I. = 3,200
