SOLUTION: Orla puts $37,000 in a 3 month term-deposit, earning a simple interest rate of 4.25% pa. After the 3 months, she then takes the principal and the interest from the first investment

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Orla puts $37,000 in a 3 month term-deposit, earning a simple interest rate of 4.25% pa. After the 3 months, she then takes the principal and the interest from the first investment      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 16672: Orla puts $37,000 in a 3 month term-deposit, earning a simple interest rate of 4.25% pa. After the 3 months, she then takes the principal and the interest from the first investment and puts it in another term-deposit with exactly the same conditions.
a) What amount of interest would be earned on the first term-deposit
Answer by mini_s(2) About Me  (Show Source):
You can put this solution on YOUR website!
principal = $37000
rate = 4.25% pa
time = 3/12
Interest amount = principal x rate x time
= 37000 x 4.25/100 x 3/12
= 393.125