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Sanjayhas$61,200inasavingsaccountthatearns9%interestperyear.Theinterestisnotcompounded.Howmuchwillhehaveintotalin9months

Question

Sanjayhas$61,200inasavingsaccountthatearns9%interestperyear.Theinterestisnotcompounded.Howmuchwillhehaveintotalin9months

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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 61,2000.090.75=61,200 * 0.09 * 0.75 = 4,113.

Step 4: Add the interest to the initial amount: 61,200+61,200 + 4,113 = $65,313.

So, Sanjay will have $65,313 in total in his savings account after 9 months.

This problem has been solved

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