Question

If you place $1,000.00 in a savings account with an interest rate of 5.25%/month, how much should you earn in interest at the end of the month?

Answer 1

5.25% turns into 0.0525. Then, you multiply 0.0525 and 1,000 together. This equals 52.50. So, you would earn $52.50 at the end of the month in interest.

Answer 2

The interest earned at the end of the month is $52.50

Explanation:

Given:

Principle = $1000

Rate of interest = 5.25% per month.

`(5.25)/(100) = 0.0525`

Now we have to find the interest earned end of the month.

We can use the following formula.

Interest = p*r*t where p is the principle, r is the rate and t is the time.

= 1000*0.0525 * 1

= $52.50

The interest earned at the end of the month is $52.50