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Carter has $3 in a savings account that earns 7% interest per year. The interest is not compounded. How much will he have in 4 months?

 Dec 14, 2018
 #1
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Formula

 

A = P + Prt

 

Where A is the final amount

P = amt invested   =   $3

r = interest rate per year   =  7% = .07  

t =  (1/3) yr

 

So we have

 

A = 3 + 3(.07)(1/3)   =  3 + 3(.07)   =  $3.21

 

 

cool cool cool

 Dec 14, 2018
 #2
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CPhill: There is a minor typo in the answer. $3 x 0.07 =0.21 cents for 1 full year.

So, for 4 months or 1/3 of a year =$3 + 0.21/3 =$3.07 - principal + interest for 4 months.

 Dec 14, 2018

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