Question

Dayna deposited $3,805 into savings account that pays a simple annual interest rateof 1.2%. How much interest will she earn after 3 months? Round answer to thehundredths place. If answer does not have a hundredths place then include zeros soit does.

Answer 1

ANSWER

$11.42

EXPLANATION

The equation for simple interest is,

$i=P\cdot r\cdot t$

Where P is the deposited amount, r is the interest rate, and t is the time in years. In this case, we have to find how much is the interest after 3 months, which is 1/4 of a year, so we have:

• P = 3805

,

• r = 1.2% = 0.012

,

• t = 1/4 year = 0.25 year

The interest earned is,

$i=3805\cdot0.012\cdot0.25=11.415\approx11.42$

Hence, the interest Dayna will earn in 3 months is $11.42.