Question

Brittany earned $835 babysitting this summer. She put her money into a savings account which earned 7.8% interest annually. If she leaves the money in the savings account for 3 months, how much interest will she earn?

Answer 1

$16.28

Explanation:

First, converting R percent to r a decimal

r = R/100 = 7.8%/100 = 0.078 per year,

putting time into years for simplicity,

3 months ÷ 12 months/year = 0.25 years,

then, solving our equation

I = 835 × 0.078 × 0.25 = 16.2825

I = $ 16.28

The simple interest accumulated

on a principal of $ 835.00

at a rate of 7.8% per year

for 0.25 years (3 months) is $ 16.28.