Question

Mr. Gardener has $300,000 in a deposit account and receives 8 1 3 % interest annually. What annual interest (in dollars) does he receive?

Answer 1

$25,000

Further explanation  

Given:  

• Mr. Gardener has $300,000 in his savings account.
• He receives 8¹/₃ % interest annually.

Question:

What interest (in dollars) does he receive annually?

The Process:  

This problem includes the type of determining simple interest.

Simple interest = $\boxed{ \ P \times r \times t \ }$  

• P = principal (initial amount)  
• r = annual interest rate
• t = time (in years)

The data is as follows:

• P = 300,000  
• r = 8¹/₃ % or ²⁵/₃₀₀ or 0.0833  
• t = 1 year

Let us calculate how much interest (in dollars) does he receive annually.

$\boxed{ \ = 300,000 \times 8\frac{1}{3} \% \times 1 \ }$  

$\boxed{ \ = 300,000 \times \frac{25}{300} \ }$  

$\boxed{ \ = 1,000 \times 25 \ }$  

$\boxed{ \ = 25,000 \ }$  

Thus the amount of interest does he receive annually equals $25,000.

- - - - - - -  

Notes

We must be able to distinguish between simple and compound interest. Please learn about this in the link attached below.

Learn more  

1. Melanie is looking for a loan brainly.com/question/2708838  
2. How much will our account accrue to in 9.5 years brainly.com/question/4127036  
3. What is the total amount owed at the end of the 4 years brainly.com/question/13675435

Answer 2

Answer:

The annual interest he receives is $25000

Step-by-step explanation:

We are given

Mr. Gardener has $300,000 in a deposit account

so,

P=300000

receives 8 1 3 % interest annually

so, r=8 1/3 %

$r=8\frac{1}{3} =\frac{8\times 3+1}{3} =\frac{25}{3}$%

time =1 year

so, t=1

now, we can use interest formula

$I=\frac{P\times r\times t}{100}$

now, we can plug values

$I=\frac{300000\times \frac{25}{3}\times 1}{100}$

now, we can simplify it

$I=25000$

So,

The annual interest he receives is $25000