Question

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?

Answer 1

$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.