Question

Tina left $1,500 in her savings account for 3 months at 1 ¾ % simple interest. How much interest did she earn?

Answer 1

I think your answer maybe:
6.56

Answer 2

$ 65.34 ( approx )

Explanation:

Since, the amount after getting simple interest is,

`A=P+P* r* t`

Where, P is the principal amount,

r is the rate per period

t is number of periods,

Here, A = $ 1,500,

t = 3 months,

Annual rate =
`1(3)/(4)\%=(7)/(4)\%=1.75\% = 0.0175`

So, the monthly interest =
`(0.0175)/(12)`

By substituting the values in the above formula,

`15000=P+P* (0.0175)/(12)* 3`

`15000=P+P* (0.0175)/(4)`

`15000=P+0.004375P`

`\implies P=\$ 14934.7`

Hence, the interest she earned is,

`I=14934.7* (0.0175)/(12)* 3 = \$ 65.3393125\approx \$ 65.34`