Question

Luis dispone de una cantidad de dinero de 25,000 RD$ para ponerlos en el banco a plazo fijo con un interés de un 1.7% al cabo de 8 meses, ¿Cuánto dinero posee Luis si no ha gastado nada? *

Answer 1

Luis's balance = $25,283.33

Explanation:

Given the following data;

• Principal = $25,000
• Interest rate, R = 1.7 %
• Time = 8 months

To find how much money Luis will have;

First of all, we would have to convert the value of time in months to a year.

Conversion:

12 months = 1 year

8 months = X year

Cross-multiplying, we have;

12 * X = 8

X = 8/12

X = 2/3 years

To find the simple interest, we would use the formula;

`S.I = \frac {PRT}{100}`

Where;

• S.I is the simple interest.
• P is the principal.
• R is the interest rate.
• T is the time measured in years.

Substituting the values into the formula, we have;

`S.I = \frac {25,000 * 1.7 * \frac {2}{3}}{100}`

`S.I = \frac {28333.33}{100}`

S.I = $283.33

Luis's balance = S.I + Principal

Luis's balance = 283.33 + 25000

Luis's balance = $25,283.33