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3. Jaycee deposits $300 in a savings account at City Bank. The account pays an annual interest rate of 5%.

She makes no other deposits or withdrawals. After three months the interest is calculated. How much
simple interest does her money earn?

User Zymotik
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1 Answer

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Final answer:

Jaycee's $300 deposit at City Bank with an annual interest rate of 5% earns $3.75 in simple interest after three months.

Step-by-step explanation:

In this case, Jaycee deposits $300 in a savings account at City Bank with an annual interest rate of 5%. Since she makes no other deposits or withdrawals, the interest earned will be calculated using the simple interest formula: Simple Interest = Principal x Rate x Time.

Given that the principal is $300, the rate is 5% (or 0.05 as a decimal), and the time is three months (or 1/4 of a year), we can substitute these values into the formula to find the simple interest:

Simple Interest = $300 x 0.05 x 1/4 = $3.75

Therefore, her money earns $3.75 in simple interest after three months.

User Joe Albahari
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