Question

Leanne deposited $1,500 into a savings account for which simple interest is calculated quarterly. If her $1,500 grew to $1,509 after 3 months, what is the yearly interest rate on Leanne's account? A. 6% B. 2.4% C. 0.24% D. 0.6% Mathematics

Answer 1

The answer would be B 2.4%.

After doing 9/375 = .024, you just move the decimal 2 places over to find the percentage.

Hope this helps! :)

Answer 2

Option B is correct

2.4%

Explanation:

Using the formula:

`A = P+Prt`

⇒
`A = P(1+rt)` .....[1]

where,

P is the principal amount

A is the Amount after t years

r is the rate expressed in decimal

As per the statement:

Leanne deposited $1,500 into a savings account for which simple interest is calculated quarterly.

⇒
`P = \$1500`

It is also given that: If her $1,500 grew to $1,509 after 3 months

⇒
`A = \$1509` and t =
`(3)/(12) = (1)/(4) =0.25` years

Substitute these given values in [1] we have;

`1509 = 1500(1+0.25r)`

Divide both sides by 1500 we have;

`1.006 = 1+0.25r`

Subtract 1 from both sides we have;

`0.006 = 0.25r`

Divide both sides by 0.25 we have;

`0.024 = r`

or

r = 0.024 or 2.4%

Therefore, the yearly interest rate on Leanne's account is, 2.4%