Savings Account: A woman deposits $600 in a savings account that pays 6% annually. If she withdraws all the money in the account after 120 days, how much does she withdraw (rounded to the nearest dollar)?She withdraws $ ? after 120 days.

Respuesta :

Data:

Principal: $600

Rate: 6% anually

Time: 120days

As the rate is anually you need to turn the 120days into years:

[tex]120\text{days}\cdot\frac{1\text{year}}{365\text{days}}=\frac{120}{365}\text{years}=\frac{24}{73}\text{years}[/tex]

Multiply the principal, the rate (in decimals) and the time in years to find how much is the interest:

[tex]600\times0,06\times\frac{24}{73}=\frac{864}{73}=11.83[/tex]

As she withdraws all the money add the principal and the interest to find how much she withdraws:

[tex]600+11.83=611.83[/tex]Then, rounded to the nearest dollar she withdraws $612