John Lee's savings account has a balance of $3427. After 9 months, what will the amount of
interest be at 4.6% per year?
3427 x 0.046 = interest for one year. For 9 months of the year it will be that x 9/12. Add the interest to the principal to obtain the amount.
89
To find the amount of interest earned after 9 months on John Lee's savings account, we can follow these steps:
Step 1: Calculate the interest rate for 9 months.
Since the annual interest rate is given as 4.6%, we need to calculate the interest rate for 9 months. To do this, we divide the annual interest rate by 12 (the number of months in a year) and then multiply by 9.
Interest rate for 9 months = (4.6% / 12) * 9 = 3.45%
Step 2: Calculate the interest amount.
To calculate the interest amount, we multiply the balance of the savings account by the interest rate in decimal form. Since the balance is $3427 and the interest rate is 3.45%, we can calculate the interest as follows:
Interest amount = $3427 * (3.45 / 100) = $118.2715
Step 3: Round the interest amount.
Round the interest amount to two decimal places since it represents a monetary value. So, the rounded interest amount will be:
Interest amount = $118.27
Therefore, the amount of interest earned after 9 months on John Lee's savings account at a 4.6% annual interest rate will be $118.27.