Question

You have 3 online accounts in three different banks valued at: bank "A" = $250.67, 12% interest, bank "B" $765.13, 7% interest, and bank "C" $28,500.36, 9% interest. What is the average interest gained from the three accounts in one year?

Answer 1

`\$882.89`

Explanation:

we know that

The simple interest formula is equal to

`I=P(rt)`

where

I is the Final Interest Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

Bank A

`t=1\ years\\ P=\$250.67\\r=12\%=12/100=0.12`

substitute in the formula above

`I=250.67(0.12*1)=\$30.08`

Bank B

`t=1\ years\\ P=\$765.13\\r=7\%=7/100=0.07`

substitute in the formula above

`I=765.13(0.07*1)=\$53.56`

Bank C

`t=1\ years\\ P=\$28,500.36\\r=9\%=9/100=0.09`

substitute in the formula above

`I=28,500.36(0.09*1)=\$2,565.03`

Find the average interest gained from the three accounts in one year

`[\$30.08+\$53.56+\$2,565.03]/3=\$882.89`