Answer
(a) $\$63$
(b) $\$3213$
Work Step by Step
(a) For a principal $P$, rate $r%$, and a time period $t$, the simple interest on that principal is $p \times r\% \times t$.
Also note that the interest is charged annually, but the time is only 6 months – or half a year.
So the interest = $ \$(3150 \times \frac{4}{100} \times 0.5) = \$63 $.
(b) The amount to be paid = principal + interest = $\$ (3150 + 63) = \$3213$.
