Question

Savings Account: A woman deposits $600 in a savings account that pays 6% annually. If she withdraws all the money in the account after 120 days, how much does she withdraw (rounded to the nearest dollar)?She withdraws $ ? after 120 days.

Answer 1

Data:

Principal: $600

Rate: 6% anually

Time: 120days

As the rate is anually you need to turn the 120days into years:

`120\text{days}\cdot\frac{1\text{year}}{365\text{days}}=(120)/(365)\text{years}=(24)/(73)\text{years}`

Multiply the principal, the rate (in decimals) and the time in years to find how much is the interest:

`600*0,06*(24)/(73)=(864)/(73)=11.83`

As she withdraws all the money add the principal and the interest to find how much she withdraws:

`600+11.83=611.83`Then, rounded to the nearest dollar she withdraws $612