Answer:
Interest he earn in the 38 days total = $2458.57
Step-by-step explanation:
As given,
Rate of interest (R)= 4.25% = 0.0425
Principal (P)= $1250
Now,
Simple Interest (S.I) for 20 days = P×R×T
= 1250×0.0425×10
= 531.25
⇒Interest for 20 days = $531.25
Now,
Total amount = P + S.I = $1250 + 531.25 = $ 1781.25
As He then makes a deposit of $450 and makes no transactions for 10 days.
⇒Total amount become = $1781.25 + 450 = $2231.25
Now,
S.I for next 10 days = 2231.25×0.0425×10
= 948.28125
⇒Interest for next 10 days = $ 948.28125
∴
Total amount = $2231.25 + 948.28125 = $ 3179.53125
As He withdraws $300 and makes no transactions for 8 days.
⇒Total amount become = $ 3179.53125 - 300 = $ 2879.53125
Now,
S.I for next 8 days = 2879.53125×0.0425×8
= 979.040625
⇒Interest for next 8 days = $ 979.040625
a.)
Interest he earn in the 38 days total = Interest in 20 days + next 10 days + next 8 days
= $531.25+948.28125+979.040625
= $2458.571875 ≈ $2458.57
∴ we get
Interest he earn in the 38 days total = $2458.57
