Question

You are given $400 as a graduation gift. You decide to place the money in a savings account with an annual interest rate of 7.5% for 9 months. Find the amount of interest you will earn

Answer 1

Answer: $22.50

Explanation:

The interest will be gotten by using the formula:

= PRT

= Principal × Rate × Time

= 400 × 7.5% × 9/12

= 400 × 0.075 × 0.75

= $22.50

The interest is $22.50