Question

In January of 2003, Gerry opened a savings account that paid 3.25% annual interest. His initial deposit was $1,100. If Gerry didn’t deposit or withdraw any additional money, what was his balance at the end of December, 2012?

Answer 1

$1,457.5

Explanation:

Just did the lesson about simple interest.

Answer 2

We know that,

`i=(PRT)/(100)`

Where,

i = interest generated,

P = principal = 1100,

R = rate of interest = 3.25%,

T = time period = 10 ( ∵ from January of 2003 to December of 2012 = 10 years),

Putting the values,

`i = (1100* 3.25 * 10)/(100) = 357.5`

∴ Gerry's balance at the end of December of 2012 is (1100 + 357.5) = $1457.5