Question

Alice deposited $3000 in a new savings account in any savings and loan association. no, other deposits or withdrawals were made. after four months, the interest was computed at an annual interest rate of 4.5%. how much simple interest did alice money earn.

Answer 1

Alice deposited $3000 in a savings account with an annual interest rate of 4.5%. After four months, using the formula for simple interest (I = PRT), her money earned $45 in interest.

Step-by-step explanation:

Alice's deposit of $3000 at an annual interest rate of 4.5% calculated for four months requires the use of the simple interest formula, which is I = PRT, where I is the interest earned, P is the principal amount deposited, R is the annual interest rate (expressed as a decimal), and T is the time in years. To find the simple interest earned over four months (which is ⅓ of a year), we use the following:

I = PRT

I = $3000 × 0.045 × (⅓)

I = $3000 × 0.045 × 0.3333...

I = $45

Therefore, Alice earned $45 in simple interest over the four-month period.