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Find the accumulated amount at the end of 5 months on a $150 bank deposit paying simple interest at a rate of 6% per year.

a. $156.75
b. $151.75
c. $153.75
d. $157.75
e. $155.75
f. None of the above.

User Merovex
by
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1 Answer

7 votes

Answer:

c. $153.75

Step-by-step explanation:

The computation of the accumulated amount at the end of 5 months is shown below:

The interest on $150 at 6% for 5 months is

= $150 × 6% × 5 months ÷ 12 months

= $3.75

Now the accumulated amount at the end of 5 months is

= Bank deposit + interest

= $150 + $3.75

= $153.75

Hence, the correct option is c. $153.75

User Amitesh
by
7.1k points