Question

A building society offers a rate of 11% per annum simple interest. Beth-Ann deposit 24000 in the society for 15 months. Calculate the amount of money due to her at the end of this period​

Answer 1

The amount of money due to Beth-Ann at the end of this period​ is $27, 300.

Explanation:

The amount at the end of a period, when simple interest is being charged is:

Amount (A) = Principal (P) + Interest (I)

Here interest is computed using the formula:

`I=P* R* T`

It is provided that:

P = 24,000

R = 11%

T = 15 months = 1.25 years

Compute the Interest as follows:

`I=P* R* T`

`=24000* 0.11* 1.25\\=3300`

The interest earned is, I = $3,300.

Compute the amount of money due to Beth-Ann at the end of this period​ as follows:

`A=P+I`

`=24000+3300\\=27300`

Thus, the amount of money due to Beth-Ann at the end of this period​ is $27, 300.