Question

David opened a savings account that pays 1.7 percent interest annually. if his initial deposit is $250, how much interest will he earn in 3 months? $1.06 $4.24 $147.06 $42.50

Answer 1

The answer is $1.06
$250 x .017 = 4.25   (1.7 percent = .017)
4.25 / 12 (months) = .354
.354 x 3 = 1.06