Phonecia deposits $300 into a simple interest account that pays 3%. After 7 months what will be the total value of her account?
A.$309.00 B. 305.25 C. $321.00 D. $9.00
Is the 3% an annual percentage rate?
I"m not sure it doesn't say if it's annual.
To calculate the total value of Phonecia's account after 7 months with a simple interest rate of 3%, you can use the formula:
Total value = Principal + (Principal x Interest Rate x Time)
In this case, the principal is $300, the interest rate is 3% (or 0.03 as a decimal), and the time is 7 months.
Calculating the interest:
Interest = Principal x Interest Rate x Time
= $300 x 0.03 x (7/12) (converting 7 months to a fraction of a year, as the interest rate is given in annual terms)
Interest = $4.25
Now, to find the total value:
Total value = Principal + Interest
= $300 + $4.25
Total value = $304.25
Therefore, the total value of Phonecia's account after 7 months will be $304.25.
However, none of the given options match this answer exactly. The closest option is B. $305.25.