Question

Taylor invests $13,000.00 at 4.75% simple interest for 26 months.How much interest is earned over the 26 month period?The interest earned over the 26 month period isHow much is in the account at the end of the 26 month period?Taylor will havein the account at the end of the 26 month period.

Answer 1

To determine the interest amount at the end over a period:

(a) Principal investment =$13000

Rate = 4.75%

Time = 26 months / 12 =2.1667

`\begin{gathered} I=(PRT)/(100) \\ I\text{ =}\frac{\text{\$13000 x 4.75 x 2.16}7}{100} \\ I=130\text{ x 4.75 x 2.167} \\ I\text{ = \$1337.94} \end{gathered}`

Therefore the interest earned over the 26 month period = $1337.94

(b) How much is in the account at the end of the 26 month period:

Amount = principal + interest

`\begin{gathered} \text{Amount = Principal + Interest} \\ \text{Principal = \$13000} \\ \text{Interest = \$1337.94} \\ \text{Amount = \$13000 + \$1337.94} \\ \text{Amount = \$14337.94} \end{gathered}`

Therefore the account at the end of the 26 month period, taylor will have = $14337.94