Question

Amistad deposited $2,163.27 in a savings account that earns 3.9% simple interest. What will Amistad's account balance be in nine months?

Answer 1

Given that Amistad deposited $2,163.27 in a savings account that earns 3.9% simple interest.

That means we need to use Simple interest formula to find the Amistad's account balance in nine months.

Simple interest formula is

A=P(1+RT)

Where P= principal amount = $2163.27

R= rate of interest = 3.9%= 0.039

T= time in years = 9 months = 9/12 years = 0.75

Now plug these values into above formula:

A=2163.27(1+0.039* 0.75)

A=2163.27(1+0.02925)

A=2163.27(1.02925)

A=2226.5456475

Hence Amistad's account balance in nine months will be approx $2226.55