Sanjayhas$61,200inasavingsaccountthatearns9%interestperyear.Theinterestisnotcompounded.Howmuchwillhehaveintotalin9months
Question
Sanjayhas$61,200inasavingsaccountthatearns9%interestperyear.Theinterestisnotcompounded.Howmuchwillhehaveintotalin9months
Solution
Sanjay has $61,200 in a savings account that earns 9% interest per year. The interest is not compounded. To find out how much he will have in total in 9 months, we need to calculate the simple interest for 9 months.
Step 1: Convert the annual interest rate from a percentage to a decimal by dividing by 100: 9/100 = 0.09.
Step 2: Convert the time from months to years: 9/12 = 0.75 years.
Step 3: Use the simple interest formula, which is Principal * Rate * Time. In this case, it's 4,113.
Step 4: Add the interest to the initial amount: 4,113 = $65,313.
So, Sanjay will have $65,313 in total in his savings account after 9 months.
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