SOLUTION: A clerk gets his first paycheck in the amount of $12500. He invests 40% in a fixed deposit account at a simple interest rate of 8% per annum for 3 years. a.How much did he in

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: A clerk gets his first paycheck in the amount of $12500. He invests 40% in a fixed deposit account at a simple interest rate of 8% per annum for 3 years. a.How much did he in      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1172004: A clerk gets his first paycheck in the amount of $12500. He invests 40% in a fixed deposit account at a simple interest rate of 8% per annum for 3 years.
a.How much did he invest ? b.How much interest did he earn?
Found 3 solutions by ikleyn, josgarithmetic, MathTherapy:
Answer by ikleyn(52794) About Me  (Show Source):
You can put this solution on YOUR website!
.

From the post, it is UNCLEAR to me, if the clerk did such investment only once (with his first paycheck),

or he did it regularly with every paycheck each month ?



Answer by josgarithmetic(39618) About Me  (Show Source):
You can put this solution on YOUR website!
(a)
%2840%2F100%29%2812500%29=highlight%285000%29

(b)
%280.08%29%285000%29=highlight%28400%29---------only if this is first year, and if compounding is yearly. Not for the full three years.

Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!

A clerk gets his first paycheck in the amount of $12500. He invests 40% in a fixed deposit account at a simple interest rate of 8% per annum for 3 years.
a.How much did he invest ? b.How much interest did he earn?
He's WRONG, AS USUAL. Interest was NOT %280.08%2850000%29%29=highlight%284000%29, so cross%28%280.08%2850000%29%29=highlight%284000%29%29.