Question

Lionel deposited $3,631.23 in a savings account that earns 1.9% simple interest. What will Lionel's account balance be in 8 months?

A. $4,183.18
B. $3,531.23
C. $3,700.22
D. $3,677.23

Answer 1

I = PRT
P = 3631.23
R = 1.9% ...have to turn this to a decimal = 0.019
T = 8/12 which reduces to 2/3

I = (3631.23)(0.019)(2/3)
I = (68.993)(2/3)
I = 137.986/3
I = 45.995

3631.23 + 45.995 = 3677.225 rounds to 3677.23 <===