Question

Philip Amherst has $600 in his savings account earning 5 3/4 annual interest. After 12 months, and using the simple interest method, what amount of interest will he have earned?

Answer 1

.............................................................

Answer 2

we are given

Philip Amherst has $600 in his savings account

so, principal amount is $600

so, we get

`P=600`

interest rate is 5 3/4 %

so,

r =5.75%

time is 12 months

Since, interest is annually

so, we can change time in years

`t=(12)/(12) year`

`t=1 year`

now, we can find simple interest

we can use formula

`SI=(P*r*t)/(100)`

now, we can plug values

`SI=(600*5.75*1)/(100)`

`SI=34.5`

so,

the amount of interest after 12 months is $34.5..........Answer