Please help very stuck

Question

 A woman deposits $300 in a savings account that pays 2% annually. If she withdraws all the money in the account after 120 days, how much does she withdraw (rounded to the nearest dollar)?

Answer 1

Don't stress...

If the annual interest rate, 2%, is earned annually that means she will earn the interest AFTER 365 days.

But since she withdrawals after only 120 days...then the interest earned is the 2% times the ratio of 120/365, because she has earned interest for the 120 days the money was in the account.

If she kept the money for the whole year, the interest earned would have been:

$300 x 2% = 300x(2/100) = $300 x (0.02) = $6

So the amount at the end of the year would be $300 + $6 = $306 OR $300 x (1.02)

The interest earned after 120 days = $300 x (2%) x (¹²⁰/₃₆₅) = $1.97

So the amount she withdraws after 120 days is $300 + $ 1.97 = $301.97 Final Answer

Hope this helps,,,

Answer 2

A = 300(1 + 0.02)(120/360)