Chapter MPS, Problem 6.2MPS

To determine

To Find: The amount of interest Charlene will earn.

Answer to Problem 6.2MPS

  $\frac{19}{1000}x$

Explanation of Solution

Given:

  $\begin{array}{l}\text{Income of Charlene }=\$1235\\ \text{Annual rate of Interest of bank is}=1.9\%\\ \text{Annual rate of interest of money market is }=3.9\%\end{array}$

Formula Used:

  $\begin{array}{l}SI=\frac{PRT}{100}\\ P=\text{Principle}\\ R=\text{Rate}\\ T=\text{Time}\end{array}$

Calculation:

  $\begin{array}{l}\text{Let amount invested in bank by Charlene be }x\\ P=x\\ R=1.9\%\\ T=1yr\\ SI=\frac{x\times 1.9\times 1}{100}=\frac{19}{1000}x\end{array}$

Conclusion:

Thus the interest is $\frac{19}{1000}x$ .