Timothy deposited $1,023.48 in a saving account that earns 2.4% simple interest. What will Timothy's account balance be in 5 months?

Hello! The formula for simple interest is prt, meaning that you multiply the principal (initial amount) by the rate (simple interest rate) by the amount of time (could be in months or years). We have the principal and the annual simple interest rate, but we're talking 5 months time. There are 12 months in a year and 5/12 is equivalent to 0.416667 in decimal form. Let's solve it. 1,023.48 * 2.4% (0.024) is 24.56352 or 24.56 when rounded to the nearest hundredth. That's $24.56 in interest earned in 1 year. Now, let's multiply by by 0.416667 to get the amount of interest. 24.56 * 0.416667 is 10.23334152 or 10.23 when rounded to the nearest hundredth. $10.23 in interest is earned in 5 months. Now, let's add it into the initial amount. 1,023.48 + 10.23 is 1,033.71. There. Timothy's account balance will be $1,033.71 in 5 months.