Titus deposited $1,508.49 in a savings account that earns 4.2% simple interest. What will Titus's account balance be in 8 months?
assuming the interest is actually credited every month,
1508.49(1+8*.042/12) = 1550.73
To calculate the account balance after 8 months with simple interest, we can use the formula:
Account Balance = Principal + (Principal * Interest Rate * Time)
Where:
Principal = $1,508.49
Interest Rate = 4.2% (expressed as decimal 0.042)
Time = 8 months
First, convert the interest rate to its decimal form:
0.042 = 4.2% / 100
Next, plug in the values into the formula:
Account Balance = $1,508.49 + ($1,508.49 * 0.042 * 8/12)
Simplify the expression:
Account Balance = $1,508.49 + ($1,508.49 * 0.028 * 2/3)
Calculate the multiplication:
Account Balance = $1,508.49 + ($1,508.49 * 0.01867)
Calculate the multiplication and addition:
Account Balance ≈ $1,508.49 + $28.161
Account Balance ≈ $1,536.651
Therefore, in 8 months, Titus's account balance will be approximately $1,536.65.