Question

Malicia Dukes-Miller deposited $2,430. After 1 month, the interest was computed at an annual rate of 6 percent. How much simple interest did her money earn?

a) $14.58
b) $36.45
c) $122.40
d) $243.00

Answer 1

Using the simple interest formula I = PRT, Malicia's deposit earned $14.58 after one month at an annual interest rate of 6%. The correct answer is option: a) $14.58

Step-by-step explanation:

To calculate simple interest, we use the formula:

Simple Interest = Principal x Rate x Time

Where:

• Principal is the amount of money deposited or borrowed ($2,430 in this case)
• Rate is the annual interest rate (6% = 0.06)
• Time is the duration of the deposit in years (1 month = 1/12 year)

Plugging in the values, we get:

Simple Interest = $2,430 x 0.06 x (1/12)

Simple Interest = $14.58

Therefore, the money earned $14.58 in simple interest.