Eric invested $20,500 in an account that earns 1% simple interest. He will make no more deposits or withdrawals.
2 answers:
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Answer:
(a) $5.3991
(b) 605.3991
Step-by-step explanation:
(a)
Taking this as simple interest
Interest=
where P is principal amount which in this case is $600, R is the rate in percentange which in this case is 0.04285% and T is the duration which in this case is 21 days. Substituting these we have
Interest= ($600*0.04285*21)/100
Interest=$5.3991
(b)
Amount repaid is combination of interest and principal amount
Amount=$600+$5.3991
=$605.3991
Ans=$605.3991