Is that 6%/year simple interest? If so, then
$500 x 0.06 = $30 for one year. So for 90 days, $530 can't be correct. I would like to have an account that would more than double in a year, much less in 90 days.
The Investors Club invests $500 at 6%
simple interest. How much is in the account after 90 days?
I get $530- Can you check
Is that 6%/year simple interest? If so, then
$500 x 0.06 = $30 for one year. So for 90 days, $530 can't be correct. I would like to have an account that would more than double in a year, much less in 90 days.
To check if $530 is the correct amount after 90 days with a simple interest rate of 6% per year, we can use the formula for simple interest:
I = P * r * t
Where:
I = Interest
P = Principal amount
r = Interest rate per time period
t = Time period in years
In this case, the principal amount (P) is $500 and the interest rate (r) is 6% per year. To find the interest for 90 days, we need to convert the time period to years. There are 365 days in a year, so 90 days would be:
t = 90 / 365 = 0.2466 years (approximately)
Now we can plug the values into the formula:
I = $500 * 0.06 * 0.2466
I ≈ $7.40 (rounded to the nearest cent)
The interest earned after 90 days is approximately $7.40. Adding this interest to the principal amount, the total amount in the account after 90 days would be:
$500 + $7.40 = $507.40
Therefore, the correct amount in the account after 90 days, with a simple interest rate of 6% per year, would be $507.40.