Question

Simple interest Help!!

Leo deposited $2,476.96 in a savings account that earns 2.9% simple interest. What will Leo’s account balance be in 11 months?

$2,548.79

$2,476.96

$2,542.81

$3,267.11

The 11 months is what is throwing me off. ): Please help me! I am taking a final exam and this is my last question and I am completely stuck!

Answer 1

is the interest montly quarterly biannual or yearly?

Answer 2

I have no clue. That is the entire question. It doesn't specify and its really annoying

Answer 3

I'm going to assume monthly though

Answer 4

Simple Interest is the loan amount times the interest rate times the period which i think would be 11

Answer 5

you could always mutliply 2,476.96x.029= get your answer and repeat the process 11 times

Answer 6

Okay, hold on. I'm going to try that lol

Answer 7

That monthly suggestion is monthly compounding.

Simple interest should be (11/12) 2.9% = 2.66%


2476.96 (1.0266)=2542.85 so go with the $2542 answer.

Answer 8

@douglaswinslowcooper That is not an answer choice though

Answer 9

Oh wait! @douglaswinslowcooper I'm sorry! I totally miss read your answer! I see it now. Are you sure that is how you do it?

Answer 10

oh it is simple interest well i totally misread that...

Answer 11

lol it's okay.