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Which one of the following does $35.69 per year per $1000.00 represent or indicate and why?

1. ($35.69/year)/$1000.00 or 2. $35.69/(year/$1000.00)

In 1, ($35.69/year) is the numerator and $1000.00 is the denominator.
In 2, $35.69 is the numerator and (year/$1000.00) is the denominator.

I thank you for your reply.

ANSWER: The 1st one says they pay $35.69 per year for each $1000 that is in the account, and that makes sense.

The 2nd one says something about a year per $1000, which makes no sense.

That sounds like its trying to say a year goes by for every $1000, which makes no sense.
From this it can be seen that it is the 1st one and not the 2nd one.

---------- FOLLOW-UP ----------


I want to thank you for the reply!

If $35.69 per year per $1000.00 is changed to $35.69 per $1000.00 per year, would the above be expressed as ($35.69/$1000)/year?

I thank you for your follow-up reply.

It is assumed by most people that when someone says they'll pat $35.69  per $1000, they really mean per year unless there is something in the conversation that indicates something else.

If they say $35.69 per $1000 (with per year implied), that could also mean that they're paying 3.569%.
So for the 2nd year, since the account already held $1,035.69, the interest would be 36.96, making the new total in the account be $1,072.65.

Note that ($35.69/$1,000)/year should really be ($35.69/$1,000)*year,
for as the years increase, the amount of interest paid increases as well.

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Scott A Wilson


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