Question

Nicci has $11,000 in a savings account that

earns a simple interest rate of 10% annually.
How much interest will she earn in 3 months?

Answer 1

The interest rate is 10% annually, which means in one year, Nicci would earn 10% of $11,000, or $1,100. To find out how much interest she will earn in 3 months, we need to divide $1,100 by 4 (since there are 4 quarters of the year) and then multiply by 3 (since we want to find the interest earned in 3 months):

$1,100/4 = $275

$275 x 3 = $825

Nicci will earn $825 in interest in 3 months.