Gretahas$65,700inasavingsaccount.Theinterestrateis13%peryearandisnotcompounded.Howmuchwillshehaveintotalin8months
Question
Gretahas$65,700inasavingsaccount.Theinterestrateis13%peryearandisnotcompounded.Howmuchwillshehaveintotalin8months
Solution
To calculate the total amount Greta will have in 8 months, we need to follow these steps:
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First, we need to calculate the annual interest she will earn. This is done by multiplying the amount in the savings account by the interest rate. In this case, it would be 8,541.
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Since the interest is not compounded and we want to find out the amount in 8 months, not a year, we need to calculate the monthly interest. We do this by dividing the annual interest by 12. So, 711.75 per month.
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Now, we multiply this monthly interest by the number of months to get the total interest for 8 months. So, 5,694.
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Finally, we add this total interest to the original amount in the savings account to get the total amount Greta will have in 8 months. So, 5,694 = $71,394.
So, Greta will have $71,394 in total in 8 months.
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