Thursday, December 8, 2011

Can someone solve this using the formula A = P(1+rt)? please SHOW WORK!!!?

Ashley deposits 3400 into her savings account earning simple interest at 6.3%, she intends on leaving the bank in eight months. How much money including both principal and interest can she withdraw at the end of this time?|||In the simple interest formula A = P(1+rt),





A = The amount the investment matures to


P = The principle (initial investment)


r = simple interest rate per year


t = the number of years the principle is invested for





Ashley's principle, P, is 3400


The interest rate is 6.3% = 6.3/100 = .063


Number of years is 8 months = 8/12 years = 2/3 year





The Amount that P matures to in 8 months is





A = 3400(1 + (.063)(2/3)) = 3400 ( 1 + .042) = 3400 ( 1.042) = $3542.80

No comments:

Post a Comment