The answer is $1219
Interest = Total amount * interest rate * time (
I=prt is the formula for calculating interest)
In this case,
Total amount = $1200
Interest rate= $ 0.19
Time span for which interest rate is being calculated= 1/12
(since the rate is yearly and we are calculating interest for a month)
Interest = 1200*0.19*1/12 = 19
So the total amount owned by family at the end of one month
= original amount + interest = $1200 +
$19 = $1219
Using the index law
![a^{ \frac{m}{n}} = (\sqrt[n]{a} )^m](https://tex.z-dn.net/?f=a%5E%7B%20%5Cfrac%7Bm%7D%7Bn%7D%7D%20%3D%20%20%28%5Csqrt%5Bn%5D%7Ba%7D%20%29%5Em)
![\sqrt[3]{6859}=19](https://tex.z-dn.net/?f=%20%5Csqrt%5B3%5D%7B6859%7D%3D19%20)
, so we can also write this as
![( \sqrt[3]{19^3} )](https://tex.z-dn.net/?f=%28%20%5Csqrt%5B3%5D%7B19%5E3%7D%20%29)
Answer: TRUE
Given:
<span>Face value $4,530,
discount rate 7.2%,
time 125 days
Discount on Simple Discount note:
Discount = Maturity Value * discount rate * term
Discount = 4,530 * 0.072 * 125/360
Discount = 113.25
Proceeds for the simple discount note
Proceeds = Maturity Value - Discount
Proceeds = 4,530 - 113.25
Proceeds = 4,416.75
The proceeds for the simple discount note is $4,416.75</span>
