Math Problem Statement
Find the accumulated amount at the end of 8 months on a $1800 bank deposit paying simple interest at a rate of 9%/year. (Round your answer to the nearest cent.) $
Solution
To find the accumulated amount using simple interest, we use the formula:
Where:
- is the accumulated amount
- is the principal amount ($1800)
- is the annual interest rate (9% or 0.09)
- is the time in years (8 months = years)
Now let's calculate it:
So, the accumulated amount at the end of 8 months is $1,908.00.
Would you like more details or have any questions?
Here are 5 related questions for further exploration:
- How does the accumulated amount change if the interest rate increases to 10%?
- What would the accumulated amount be after 12 months instead of 8 months?
- How does compound interest differ from simple interest in calculating the accumulated amount?
- What is the formula for calculating simple interest?
- How would the interest change if the time period was expressed in days rather than months?
Tip: Always double-check the units of time in interest calculations to ensure consistency with the rate provided.
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Math Problem Analysis
Mathematical Concepts
Simple Interest
Interest Calculations
Formulas
Simple Interest Formula A = P(1 + rt)
Theorems
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Suitable Grade Level
Grades 7-9