I need help with this please

Question

 A woman deposits $900 in a savings account that pays 5% 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

Here we can use the simple interest formula since the savings account is compounded annually. Therefore:

A = P(1 + rt) where

A = final amount

P = principal or starting amount

r = interest rate

t = length of time

We can now plug in variables and solve for A:

A = 900(1 + 0.05 * 120/360) = $915.00