Answer:
$248.75
Explanation:
We are told that the interest rate is 13% per Annum = 13% per year
Hence, the interest rate in a month = 13% /12
= 1.0833333333% in a month
Tony Giacomin deposited $1600 on July 3rd in a special investment account which earns 13% p.A. Simple interest.
Interest = Principal × rate × time
Rate = 13% = 0.13
Time = July 3rd - November 12 = 132 days
= $1600 × 0.13 × 132/365
= $75.221917808
On August 17th he deposited another $5600 in the account. If he closed the account on November 12th
Interest = Principal × rate × time
Rate = 13% = 0.13
Time = August 17th - November 12 = 87 days
= $5600 × 0.13 × 87/365
= $173.52328767123288
The next step would be to add these Interests together
$173.52328767123288 + $75.221917808
= $248.74520548
Approximately ≈ $248.75
Therefore, his investment that he has earned over this period of time is $248.75