Respuesta :
Answer:
Interest = $ 30.59
Proceedings = $ 844.41
Step-by-step explanation:
Principal = $875
Rate of Interest (r) = 10.5%
Time(t) = 120 days = 0.33 years
n = number of times the interest rate is compounded in one year
⇒ n = 12
[tex]\text{Compound Interest = }Principal\times (1+\frac{rate}{100\times n})^{n\cdot t}\\\\\text{Compound Interest = }875\times (1+\frac{10.5}{12\times 100})^{12\times 0.33}\\\\\bf\implies \textbf{Compound Interest = }\$905.59[/tex]
Now, Interest = Compound Interest - Principal
⇒ Interest = 905.59 - 875
= $ 30.59
And the proceedings are = Principal - Interest
= 875 - 30.59
= $ 844.41
