Question

What would be the total interest earned and the total percent yield for the time period for the following problem? Remember that the total percent yield is not the APY. Note: Round your answer for the total interest to the nearest dollar if needed and input your answer with the dollar sign. Example $215. Round your answer for the total percent yield for the time period to the nearest whole percent if needed and input your answer with the percent symbol. Example 21%. What would be the balance in Marty’s account after 55 months if he initially deposited $1,000 and his bank paid him simple interest at an annual rate of 7.2%?

Answer 1

The balance in Marty’s account will be $1330

Simple interest= (P x R x T) / 100

Where,

P = Principal = $1,000

R= Rate = 7.2%

T = Time = 55 months =  4.583333 years.

Simple Interest = (1000 x 7.2 x 4.58) / 100

=$329.76 = $330 (approx.)

Amount = Principal + Simple Interest

=$1000 + $330

=$1330

What is Simple Interest?

Simple interest is calculated based on a loan's principal or the initial deposit into a savings account. Simple interest doesn't compound, so a borrower will never have to pay interest on the interest already accumulated because a creditor will only pay interest on the principal amount.

How do I calculate simple interest?

Simplified interest (S.I.) is computed using the following formula: S.I. = P*R *T, where P stands for principal, R for the annual percentage rate of interest, and T for time, which is typically expressed as the number of years. Written as r/100, the interest rate is expressed as a percentage, or r%.

Learn more about Simple Interest: brainly.com/question/25845758

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