Businesses deposit large sums of money into bank accounts. Imagine an account with 10 milliondollars in it.
a. How much would the account earn in one year of simple interest at a rate of 5.12%?

Answer:

The account will earn in one year the amount of $10,512,000

Step-by-step explanation:

Given as :

The principal in the account = $10,000,000

The rate of interest = 5.12% at simple interest

The time period = 1 years

Let The amount that account earn after 1 year = $A

From Simple interest method

Simple interest = S.I =

or, S.I =

or, S.I =

or, S.I = $512,000

So, Simple interest = S.I = $512,000

Now, Amount = Principal + Interest

I.e A =  $10,000,000 + $512,000

Or, A = $10,512,000

So, Amount = A = $10,512,000

Hence The account will earn in one year the amount of $10,512,000 Answer

Final answer:

The business account with a principal amount of $10,000,000, an interest rate of 5.12%, and a time of 1 year, would generate $512,000 in simple interest.

Explanation:

To calculate simple interest, we use the formula I = PRT, where I is the interest, P is the principal amount (the initial sum of money), R is the rate of interest (in decimal form), and T is the time in years. In this case:

• P = $10,000,000
• R = 5.12% = 0.0512 (converted from percentage to decimal)
• T = 1 year

To find the interest, you would substitute these values into the formula to get:

I = (10,000,000) * (0.0512) * (1) = $512,000

So the account would earn $512,000 in one year of simple interest at a rate of 5.12%.

Learn more about Simple Interest here:

brainly.com/question/40405117

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