suppose you earn 3% on a $1200 deposit for 5 years. explain how the simple interest is affected if the rate is increaced by 1%. what happens if the time is increaced by 1 year

Question

Mathematics

Mackenzie Liu

10 November, 10:13

suppose you earn 3% on a $1200 deposit for 5 years. explain how the simple interest is affected if the rate is increaced by 1%. what happens if the time is increaced by 1 year

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Answers (1)

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Oliver Robertson · Answer 1

I am not very sure about my answer but I will try my bes.

I think you earn 3% of $1200 every year for 5 years.

so 1200 divided by 100 is 12 which is 1% of 1200

12 multiplied by 3 is 36.

so 3% of $1200 is $36.

multiplied by 5 is $180.

you earn $180 interrs over 5 years with an interest rate of 3% from $1200

If the interest rate was increased by 1%, then you will earn a total of 4% interest.

4% of $1200 is 12 times 4 = $48

over 5 years, earning 4% of interest rate, you will earn a total of $240 interest.

If the interest rate is 3%, then over 5 years you will earn $180.

If the interest rate is 4%, then over 5 years you will earn $240.

If the year was increased by 1 then you will earn $36 * 6 dollars which is $216 with a 3% interest rate.

If the year was increased by 1 then you will earn 48 * 6 dollars which is $288 with a 4% interet rate.