Perry earns 5 percent simple interest annually on his savings account. How much interest will Perry earn each month on $650?
Simple interest:
I = P r t
P = $650
r = 5% = 0.05
t = 1/12 ( one month )
I = $650 0.05 1/2
I = $2.70
Answer:
Perry will earn $2.70 each month.
Answer:
Perry earn $2.71 each month on $650.
Step-by-step explanation:
The principal amount is $650.
The rate of interest is 5% annually.
The annual interest formula is
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Where, P is principle amount, r is interest rate and t is time in years.
The annual interest is
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The month interest is
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Therefore Perry earn $2.71 each month on $650.