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Find the interest for one month on $575 at 3.1% annual interest paid monthly.​

User Lucas Paz
by
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1 Answer

5 votes

Answer:

$1.5

Step-by-step explanation:

Interest is compounded monthly.

The applicable formula for amounts after one month is

A = P + (1 + r)^n

P = principal amount $575

r is interest rate 3.1% per year or 3.1/12 per month =0.26% or 0.0026

n= 1 month

A = $575 +( 1+0.0026)^1

A =$575x 1.0026

A= $576.495

A= $576.5

Interest earned in the month

= $576.5 -$575

=$1.5

User Anna Fortuna
by
7.5k points