Question

Advertising A bank manager wants to encourage new customers to open accounts with principals of

at least $2,500. 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 eam $10 the first month? Can
the poster correctly say, "Open an account of $2,500 and earn at least $10 interest in 1 month!"?
Explain your answer (be careful he said 1 MONTH).

Answer 1

The poster say, "Open an account of ​$3,500 and earn at least ​$10 interest in 1​ month!" is correct

Explanation:

Given, 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 4.8%.

We have to find what must the principal be if the bank manager also wants to advertise that one can earn $10 the first month

We know that, banks offer simple interest

In our problem, simple interest = $10, rate = 4.8%, time = 1 month

Let us see Can the poster correctly say, "Open an account of $3,500 and earn at least $10 interest in 1 month!"?

So now, in our problem, amount = $3500, rate = 4.8% and time = 1 month =

So, the statement is correct.

Hence, amount to be invested is $2500 and poster says correctly.