how much interest will $3298 get in 6 months at  3% a month
in Algebra 1 Answers by

Your answer

Your name to display (optional):
Privacy: Your email address will only be used for sending these notifications.
Anti-spam verification:
To avoid this verification in future, please log in or register.

1 Answer

Simple interest would come to 6×3=18% in 6 months.

18% of $3298=3298×0.18=$593.64 interest.

If it's compound interest (compounded monthly) then the solution is different.

End of 1st month, interest would be $98.94 (3% of $3298) so the amount would become $3396.94.

End of 2nd month, interest would be $101.9082 (3% of $3396.94) so the amount would become $3498.8482.

End of 3rd month the amount becomes $3603.81(3646).

End of 4th month the amount becomes $3711.92(8055).

End of 5th month the amount becomes $3823.28(5897).

End of 6th month the amount becomes $3937.98(4474). The interest is $3937.98-$3298.00=$639.98.

Compare this with $593.64 and you can see that compound interest works better by $46.34.

by Top Rated User (1.2m points)

Related questions

0 answers
0 answers
Welcome to MathHomeworkAnswers.org, where students, teachers and math enthusiasts can ask and answer any math question. Get help and answers to any math problem including algebra, trigonometry, geometry, calculus, trigonometry, fractions, solving expression, simplifying expressions and more. Get answers to math questions. Help is always 100% free!
87,516 questions
100,279 answers
2,420 comments
732,259 users