Question

Find the balance on a deposit of $500 that earns 6% simple interest for 3 months.

Answer 1

To find the simple interest, we multiply 500 × 0.06 × 3 to get that:

The interest is: $90.00

making your answer D$590

Answer 2

12 months = 1 year
1 month = 1/12 year
3 months = 3/12 years.

$S.I= \frac{P*R*T}{100} \\ = \frac{500 \times 6 \times \frac{3}{12} }{100} \\ = \frac{500 \times \frac{3}{2} }{100} \\ = \frac{250 \times 3}{100} \\ = \frac{750}{100} = 7.50 \: as \: interest$
Amount = Principal + Interest
= $500 + $7.50 = $507.50

Answer is C)