Question

Caroline won 250,000 in the lottery after paying 96,000 in taxes she plays the remaining amount in a savings account at 2% interest rate how much interest will the amount earned after 6 months

Answer 1

Answer

Caroline will earn 1,540 in interest in 6 months.

Explanation

The interest generated o any amount, P, invested at a rate of R% for time, T, is given as

Interest = (PRT/100)

For this question

P = Amount invested or saved = 250,000 - 96,000 = 154,000

R = Rate = 2%

Time = 6 months = ½ year = 0.5 year

Interest = (PRT/100)

Interest = (154,000 × 2 × 0.5)/100 = 1,540

Hope this Helps!!!