Question

Barbara deposited $300 in the bank. If the bank pays her simple interest at the rate of 4 percent per year, how much money will she have in her account at the end of 9 months?

Answer 1

309

Explanation:

The formula for simple interest is

A = P(1 + rt)

where A is the amount of money in the account

P is the principal invested

r is the interest rate in decimal form

t is the time invested in years

We know

P = 300

r = 4% = .04

t = 9 months = 9 months * 1 year/12 months = .75 year

Substituting into the equation

A = 300(1 + .04*.75)

=300 (1+.03)

=300(1.03)

= 309