Mr. Gardener has $300,000 in a deposit account and receives 8 1/3% interest annually. What annual interest (in dollars) does he receive?
If the money is left in the account, the interest will be COMPOUNDED, and will differ, as it'll increase from year to year.
However, if he withdraws the interest as soon as it's credited to the account, at the end of the interest period, then the interest amount will
be CONSTANT (remain unchanged) from year to year.
In my opinion, this is a RIDICULOUSLY-FORMED, and RIDICULOUSLY-VAGUE math question, and should be ignored until the person who created it makes it less ambiguous.
