Answer:
Option B [tex]\$66.67[/tex]
Step-by-step explanation:
we know that
The simple interest formula is equal to
[tex]I=Prt[/tex]
where
P is the Principal amount of money to be invested
r is the rate of interest in decimal form
t is Number of Time Periods in years
in this problem
we assume that
[tex]1\ month=30\ days[/tex]
[tex]t=120\ days=(1/3)\ years\\ P=\$4,000\\r=0.05[/tex]
substitute in the formula above
[tex]I=\$4,000*0.05*(1/3)=\$66.67[/tex]
