Alexus deposited $1900 into a savings account that pays a simple annual interest rate of 1.8%. how much interest will she earn after 9 months?

Question

asked Apr 27, 2019 2.5k views

1 Answer

Doug Lerner · Answer 1 · 2019-05-03T18:08:09+0000

Answer:

$25.65

Explanation:

We have been given that Alexus deposited $1900 into a savings account that pays a simple annual interest rate of 1.8%.

To find the amount of interest earned in 9 months we will use simple interest formula.

I=Prt , where,

$I=\text{Amount of interest}$ ,

$P=\text{Principal amount}$ ,

$r=\text{Interest rate in decimal form}$ ,

$t=\text{Time in years}$

Let us convert our given interest rate in decimal form and time in years.

$1.8\%=(1.8)/(100)=0.018$

$9\text{ months}=(9)/(12)\text{ year}=(3)/(4)\text{ year}=0.75\text{ year}$

Upon substituting our given values in simple interest formula we will get,

$I=\$1900*0.018*0.75$

$I=\$25.65$

Therefore, Alexus will earn an amount of $25.65 in interest after 9 months.