Question

Janelle has $13,163 in a savings account that earns 14% annually. The interest

is not compounded. To the nearest cent.How much interest will she earn in 3 months?

Answer 1

To calculate the interest earned in 3 months, we need to first find the monthly interest rate.

The annual interest rate is 14%, so the monthly interest rate is:

14% / 12 months = 1.1667% per month

Next, we can calculate the interest earned in 3 months by multiplying the monthly interest rate by the principal (the amount in the savings account):

3 months * 1.1667% per month * $13,163 = $485.95

Therefore, Janelle will earn $485.95 in interest in 3 months.

Answer 2

To calculate the interest Janelle will earn in 3 months, we need to use the formula:

Interest = Principal x Rate x Time

Where:
- Principal is the amount of money Janelle has in her savings account ($13,163)
- Rate is the annual interest rate (14%)
- Time is the length of time the interest will accrue (3 months, or 0.25 years)

Plugging in the values, we get:

Interest = $13,163 x 0.14 x 0.25 = $460.66

Therefore, Janelle will earn $460.66 in interest after 3 months.