Question

Caroline won $205000 in a lottery. After paying $96000 in taxes, she placed the remaining amount in a savings account at a 2% interest rate. How much interest will the account earn after just 6 months?

Answer 1

Answer: $1090

Explanation:

Since Caroline won $205000 in a lottery and then paid $96000 in taxes, the remaining amount will be:

= $205000 - $96000

= $109000

The interest that the account will earn after just 6 months will be:

Interest = PRT

= 109000 × 2% × 6/12

= 109000 × 0.02 × 0.5

= $1090