Sunday, July 12, 2009

Math Question?

The Dartmouth Bank decided to increase the simple interest on savings accounts by 3/4%. The current rate of interest is 3.1%. What will be the simple interest at the new rate for 2 years on an account of $20,000



show your work.



Math Question?payment calculator





Old interest rate = 3.1%



new interest rate = 3.1 + 3/4 = 3.1 + 0.75 = 3.85%



Simple interest,I = PNR/100



where P = 20,000, N = 2 and r = 3.85



I = 20,000*2*3.85/100 = $770



Math Question?

loan



3.1% + .75 % = 3.85% x $20,000= $770

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