Question

Jamila deposits $800 in a account that earns yearly simple interest rate of 2.65. How much money is in the account after 3 years and 9 months. Show Your Work.

Answer 1

since a year has 12 months, then 3 years will be 36 months, now, 3 years and 9 months is just 36 + 9 = 45 months. So we can say that 3 years and 9 months is really 45/12 of a year.

`~~~~~~ \textit{Simple Interest Earned Amount} \\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\dotfill & \$800\\ r=rate\to 2.65\%\to (2.65)/(100)\dotfill &0.0265\\ t=years\to (45)/(12)\dotfill &(15)/(4) \end{cases} \\\\\\ A=800[1+(0.0265)((15)/(4))]\implies A=800(1+0.099375) \\\\\\ A=800(1.099375)\implies A=879.5`