Question

Mrs Martin deposits $2,350 in a money market account. Her account earns an interest rate 18% if she does not deposit or withdraw any money from the account how much will mrs Martin have in the account at the end of six months

Answer 1

To find out how much Mrs. Martin will have in her money market account at the end of six months, we need to calculate the interest earned on her initial deposit of $2,350. The interest rate is 18% per year, but since the account compounds annually, we need to calculate the interest for half a year or 0.5 years. First, we calculate the interest earned: $2,350 × 0.18 × 0.5 = $211.5. To find out the final amount in the account, we add the interest earned to the initial deposit: $2,350 + $211.5 = $2,561.50.

Step-by-step explanation:

To find out how much Mrs. Martin will have in her money market account at the end of six months, we need to calculate the interest earned on her initial deposit of $2,350. The interest rate is 18% per year, but since the account compounds annually, we need to calculate the interest for half a year or 0.5 years.

First, we calculate the interest earned: $2,350 imes 0.18 imes 0.5 = $211.5.

To find out the final amount in the account, we add the interest earned to the initial deposit: $2,350 + $211.5 = $2,561.50.

Answer 2

Answer: $2,561.50
(I = A - P = $211.50)

Equation:
A = P(1 + rt)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 18%/100 = 0.18 per year.

Solving our equation:
A = 2350(1 + (0.18 × 0.5)) = 2561.5
A = $2,561.50

The total amount accrued, principal plus interest, from simple interest on a principal of $2,350.00 at a rate of 18% per year for 0.5 years is $2,561.50.