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Lindseyhas$79,152inasavingsaccountthatearns9%annually.Theinterestisnotcompounded.Howmuchwillshehaveintotalin4months?

Question

Lindseyhas$79,152inasavingsaccountthatearns9%annually.Theinterestisnotcompounded.Howmuchwillshehaveintotalin4months?

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Solution

To calculate the total amount Lindsey will have in 4 months, we need to first calculate the annual interest she earns, and then adjust it for the 4-month period.

  1. Calculate the annual interest: Interest = Principal amount * rate of interest = 79,1529/100=79,152 * 9/100 = 7,123.68

This is the amount of interest Lindsey earns in one year.

  1. Since the interest is not compounded, we can simply calculate the interest for 4 months by dividing the annual interest by 12 (to get the monthly interest) and then multiplying by 4.

    4-month interest = (Annual interest / 12) * 4 = (7,123.68/12)4=7,123.68 / 12) * 4 = 2,374.56

  2. Finally, add the interest earned in 4 months to the initial amount in the savings account to get the total amount Lindsey will have in 4 months.

    Total amount = Initial amount + 4-month interest = 79,152+79,152 + 2,374.56 = $81,526.56

So, Lindsey will have $81,526.56 in total in her savings account after 4 months.

This problem has been solved

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