Question

Samantha has $1,290 in a savings account that pays 4% simple interest. How much interest will she earn in 9 months? How much will she have in the account altogether?

Answer 1

Given:

Principal = $1290

Rate of simple interest = 4%

Time = 9 months

To find:

The interest and total saving in the account altogether.

Solution:

The formula for simple interest is

`I=(P* r* t)/(100)` ...(i)

where, P is principal, r is rate of interest and t is time in years.

We know that,

`12\ months=1\ year`

`1\ month=(1)/(12)\ year`

`9\ months=(9)/(12)\ year`

`9\ months=0.75\ year`

Putting P=1290, r=4 and t=0.75 in (i), we get

`I=(1290* 4* 0.75)/(100)`

`I=(3870)/(100)`

`I=38.70`

So, the simple interest is $38.70.

Total savings is

`1290+38.70=1328.70`

Therefore, the total amount in the account altogether is $1328.70.