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?

Question

asked Jul 5, 2021 100k views

1 Answer

Vijar · Answer 1 · 2021-07-11T14:53:11+0000

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.