Question

A bank manager wants to encourage new customers to open accounts with initial deposits of at least $3000. He has posters made for the promotion. Under the new promotion, what is the minimum amount of interest a new account would make in one year it there were no withdrawals from the account?

Answer 1

Incomplete question. However, let us assume

• the interest rate is 5%, and
• the time is 1 year.

Answer:

$150

Explanation:

Note, the bank manager wants new customer accounts opened with at least, $3,000. Hence we have a principal, $3000. Using the simple interest formula:

`S.I= (amount*rate*time)/(100)`

`SI=(3000*5*1)/(100)` = $150

Therefore, the minimum amount of interest a new account would make in one year is $150.