Question

Yousef deposits $425.00 in a savings account that earns a simple interest rate of 3.5% annually. How much interest does Yousef earn after three months? (4 points)

$3.72
$8.92
$8.93

Answer 1

9514 1404 393

Answer:

(a) $3.72

Explanation:

The interest is found using the formula ...

I = Prt

where P is the principal invested at rate r for t years. 3 months is 1/4 year, so the interest is ...

I = $425×0.035×1/4 ≈ $3.72

Yousef earns $3.72 after 3 months.