Respuesta :
Answer:
The annual interest he receives is $25000
Step-by-step explanation:
We are given
Mr. Gardener has $300,000 in a deposit account
so,
P=300000
receives 8 1 3 % interest annually
so, r=8 1/3 %
[tex]r=8\frac{1}{3} =\frac{8\times 3+1}{3} =\frac{25}{3}[/tex]%
time =1 year
so, t=1
now, we can use interest formula
[tex]I=\frac{P\times r\times t}{100}[/tex]
now, we can plug values
[tex]I=\frac{300000\times \frac{25}{3}\times 1}{100}[/tex]
now, we can simplify it
[tex]I=25000[/tex]
So,
The annual interest he receives is $25000
$25,000
Further explanation
Given:
- Mr. Gardener has $300,000 in his savings account.
- He receives 8¹/₃ % interest annually.
Question:
What interest (in dollars) does he receive annually?
The Process:
This problem includes the type of determining simple interest.
Simple interest = [tex]\boxed{ \ P \times r \times t \ }[/tex]
- P = principal (initial amount)
- r = annual interest rate
- t = time (in years)
The data is as follows:
- P = 300,000
- r = 8¹/₃ % or ²⁵/₃₀₀ or 0.0833
- t = 1 year
Let us calculate how much interest (in dollars) does he receive annually.
[tex]\boxed{ \ = 300,000 \times 8\frac{1}{3} \% \times 1 \ }[/tex]
[tex]\boxed{ \ = 300,000 \times \frac{25}{300} \ }[/tex]
[tex]\boxed{ \ = 1,000 \times 25 \ }[/tex]
[tex]\boxed{ \ = 25,000 \ }[/tex]
Thus the amount of interest does he receive annually equals $25,000.
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Notes
We must be able to distinguish between simple and compound interest. Please learn about this in the link attached below.
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