Question says
" Find the accumulated amount at the end of 9 months on an $800 deposit in a bank pating simple interest at a rate of 6% year".
I know that the simple interest formula is A=P (1+rt)
With p being $800 and r being 0.06. I know that t is the year.
Would I put t as 9 even though I believe that t is for years?
So something like A= 800 (1+(0.06*9)?
3 answers
Do I divide 9 by 12 (12 months in a year) and use that as t?
t=3/4?
you divide the yearly interest rate by 12, then use 9 for t, since it is the number of payments, not always just years.
A= 800 (1+(0.06/12)*9)
A= 800 (1+(0.06/12)*9)
2 answers