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
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