Question

A bank manager wants to encourage new customers to open accounts with principal of at least 3500. He decides to make a poster advertising a simple interest rate of 3%. What must the principal be if the bank manager also wants to advertise that one can earn $10 the first month? Can the poster correctly say. " Open am account of 3500 and earn at least $10 interest in 1 month

Answer 1

Given that A bank manager wants to encourage new customers to open accounts with principals of at least $3,500.

He decides to make a poster advertising a simple interest rate of 3%.

So we have to find what must the principal be if the bank manager also want to advertise that one can earn $10 the first month.

the simple interset is:

`\begin{gathered} I=(P* r* t)/(100) \\ 10=(P*3*(1)/(12))/(100) \\ 1000=P*3*(1)/(12) \\ P=4000 \end{gathered}`

so we have to check that the poster correctly say. " Open am account of 3500 and earn at least $10 interest in 1 month

`\begin{gathered} I=(3500*3*(1)/(12))/(100) \\ I=35*3*(1)/(12) \\ I=8.75 \end{gathered}`

So the statement is incorrect.