I need serious help with Word Problems in Math 11 Level.

[Gamecubesupreme]

Alright, I am learning about interest rate and stuff like that and I get it, but I seriously SUCK at word problems.

For example, here is the question:

1) On March 14, the balance in a daily interest account was $870. No deposits or withdrawals were made. The annual interest rate was 3 3/4%. Calculate the balance on June 19.

I know the general rules are:

1) Accumulated amount = Principle + I

2) A = P(1+i)

3) A = P ( 1 + t/m) ^ n*m

I don't even know how to tackle the question.

PLEASE HELP

 

[Gamecubesupreme]

Please help >_<

 

[Gamecubesupreme]

Here is what I've got:

P is the principal amount, $870.00.

r is the interest rate, 3.75% per year, or in decimal form, 3.75/100=0.0375.

The best I could do for time is 97 days, or 97/365 = .2658

t is the time involved, 0.2658...year(s) time periods.

So, t is 0.2658...year time periods.

I multiply 870 × 0.0375 × 0.2658

The interest is: $8.67

870.00 + 8.67 = $878.67 on June 19.

Am I right?

 

[Tom McCurdy]

I am not sure from just the way you described it but I did a similar thing method... and found the same answer

\frac{870*.0375}{365}*97+870=878.67