Question

Fargus deposits $366 in a savings account at City BankThe account pays an annual interest rate of 5 percent She makes no other deposits or withdrawalsAfter three months the interest is calculated. How much simple interest does her money

Answer 1

The Simple interest after three month $423.70

What is Simple Interest ?

Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.

If she deposits $366 in the account and you receive interest, you must first calculate the interest for the current year before adding the sum to calculate the interest for the following month.

for instance, deposit plus interest equals the new amount for month one, month one amount plus interest equals amount for month two, and month two amount plus interest equals amount for month three.

The total would thus be $423.70 for the following month:

month 1

366+ (366*.05)=x

366+18.3=x

month 2

384.30+(384.30*.05)=x

384.30+19.22=x

month 3

403.52+(403.52*.05)=x

403.52+20.18=x

423.7 = x

Thus, total amount then would be $423.70

To know more about Simple Interest click on the link

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