Question

Andy deposited $\$1567.12$ in a savings account that earns $1.9\%$ simple interest. What will Andy’s account balance be in nine months?

• A. $\$1567.12$
• B. $\$1589.45$
• C. $\$1596.90$
• D. $\$1835.10$

Answer 1

The correct option is B

$\$1589.45$

Explanation for the correct option:

Finding Andy's account balance after $9$ months

Given, Principal = $\$1567.12$

Rate of interest = $1.9\%$

Time = $9months=\frac{9}{12}year=\frac{3}{4}year$

We know that,

$\text{Simple Interest =}\frac{\text{Principal × Rate of interest × time}}{100}$

Hence, the interest earned in nine months can be written as, $=\frac{1567.12\times 1.9\times \left({\displaystyle \frac{3}{4}}\right)}{100}\left[\mathrm{T}=9\mathrm{months}=\frac{9}{12}\mathrm{years}=\frac{3}{4}\mathrm{years}\right]$

$=\$22.33$

We know that,

$\text{Total Amount = Principal + S.I}$

Hence, the total amount after nine months $=\$1567.12+\$22.33$

$=\$1589.45$

Thus, option(B) is the correct answer.