Question

erin has 40,000 in a savings account that earns 15% interest per year. the interest is not compounded. how much will she have in 3 months?

Answer 1

$41500

Explanation:

First, converting R percent to r a decimal

r = R/100 = 15%/100 = 0.15 per year,

putting time into years for simplicity,

3 months ÷ 12 months/year = 0.25 years,

then, solving our equation

I = 40000 × 0.15 × 0.25 = 1500

I = $ 1,500.00

The simple interest accumulated

on a principal of $ 40,000.00

at a rate of 15% per year

for 0.25 years (3 months) is $ 1,500.00.