Answer:
i. The amount made in interest is $65,000.
ii. Yes, because her expenses is lesser that her interest.
Step-by-step explanation:
i. The woman puts $1,000,000 in a savings account with an interest rate of 6[tex]\frac{1}{2}[/tex]%.
Interest rate = 6[tex]\frac{1}{2}[/tex]% = [tex]\frac{13}{200}[/tex]
The amount she would make in interest = [tex]\frac{13}{200}[/tex] × 1,000,000
= 65,000
The amount made in interest is $65,000.
ii. The total of her expenses last year is $47,0000 which is lesser than the amount made in inerest.
After her total expenses, should would have a remainder of;
= $65,000 - $47,0000
= $18,000
Therefore, she would be able to live off the interest.
